Malaysia Data Center Market Report 2023: A $2.9 Billion Market by 2028 -Competition, Forecast & Opportunities - Significant Growth in Response to Rising Data Consumption and Digital Transformation

Dublin, Oct. 27, 2023 (GLOBE NEWSWIRE) -- The "Malaysia Data Center Market, Competition, Forecast & Opportunities, 2028" report has been added to's offering.

The Malaysia data center market is experiencing substantial growth due to the surging demand for efficient data storage and processing, driven by increasing data consumption. Government investments to provide physical data center space and the rollout of 5G infrastructure for faster internet connectivity have further bolstered the demand for data centers.

One of the key drivers is the availability of a skilled workforce and the cost advantages of operating in Malaysia, making it an attractive location for data centers. This, coupled with stringent safety and quality regulations governing the quality of digital services, has led to a growing emphasis on data centers to meet the escalating data consumption.

Companies are increasingly reliant on computer systems, especially with the growing number of internet users and digital services shaping their business operations. Additionally, the rising demand for data and high bandwidth capacity, fueled by the surge in smartphone users, is driving the development of the data center market in Malaysia.

Rapid Adoption of Cloud and Digital Transformation

Malaysia's digital journey has been accelerating rapidly, particularly with the adoption of cloud computing. The country is harnessing digital technologies to reap significant economic benefits. Numerous cloud service providers have established their presence in Malaysia, with availability zones and data scrubbing centers in strategic locations, such as Johor, Cyberjaya, and Kuala Lumpur. This infrastructure supports high availability and low latency.

Major players like Google, Alibaba Group, Amazon Web Services (AWS), and Microsoft Corporation have announced plans to set up cloud regions in Malaysia. This has attracted various data center providers, including Equinix, AirTrunk, Yondr Group, and GDS Holdings, to establish facilities in Johor.

Medium-sized and small companies, along with government organizations, are also accelerating their cloud adoption efforts. Initiatives like the SME Digitalization Grant offered by the Malaysia Digital Economy Corporation (MDEC) are supporting SMEs in adopting digital systems.

The demand for cloud computing has further surged due to the adoption of remote working practices, making cloud-managed services an integral part of digital transformation initiatives. Therefore, the rapid adoption of cloud and digital transformation by companies is a significant driver of growth in Malaysia's data center market.

Increasing Number of Internet Users and Digital Services

The proliferation of internet users and advancements in online technologies have driven companies to offer their products and services online. Malaysia's high internet penetration rate has led to large-scale digital application development, necessitating large data centers and cloud technologies.

As of early 2022, Malaysia had 29.55 million internet users out of a total population of 32.6 million, resulting in a penetration rate of 89.6 percent. The country added 1.2 million new digital consumers between the end of 2021 and the last quarter of 2022.

Growth in Renewable Energy and Infrastructure

Data centers are known for their high energy consumption. Malaysia, being a major producer of oil and natural gas in Southeast Asia and a significant exporter of liquefied natural gas (LNG), has the energy resources to support data center operations. Moreover, the government is actively promoting renewable energy to reduce reliance on fossil fuels.

Malaysia's Ministry of Energy and Natural Resources (KeTSA) aims to have 31% of the country's installed capacity come from renewable sources by 2025. This includes energy sources like hydropower, solar, wind, and biomass. The growth in renewable energy and infrastructure offers robust opportunities in Malaysia's data center market.

Enterprise Investments in Data Centers

Malaysia is emerging as a data center hub in Asia, attracting domestic and international enterprises with pro-business policies and a skilled workforce. The government's commitment to accelerating digital adoption aligns with the growth of the domestic data center industry.

The New Investment Policy, introduced by the Ministry of Investment, Trade and Industry (MITI) in October 2022, aims to boost economic complexity and create high-value job opportunities. The country's favorable business environment has attracted both domestic and international enterprises to invest in expanding digital infrastructure, including the development of hyperscale campuses in locations like Cyberjaya.

In summary, Malaysia's data center market is thriving due to increased data consumption, rapid digital transformation, a growing number of internet users, renewable energy initiatives, and substantial investments by enterprises. The country is well-positioned to become a prominent player in the data center industry, driven by its supportive policies and strategic advantages.

Key Attributes:

Report AttributeDetails
No. of Pages84
Forecast Period2023 - 2028
Estimated Market Value (USD) in 2023$1.87 Billion
Forecasted Market Value (USD) by 2028$2.9 Billion
Compound Annual Growth Rate7.6%
Regions CoveredMalaysia

Competitive Landscape

  • NTT Communications Corporation
  • Telekom Malaysia Berhad (TM)
  • PLTPRO Data Centre Sdn Bhd
  • AIMS Data Centre Sdn Bhd
  • Bridge Data Centres Malaysia Sdn. Bhd.
  • IP ServerOne Solutions Sdn. Bhd.
  • Keppel Data Centres Holdings Pte Ltd
  • GDS Services Ltd
  • Cisco Systems Inc.

Report Scope:

Malaysia Data Center Market, By Solution:

  • IT Infrastructure
  • General Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • Others

Malaysia Data Center Market, By Type:

  • Corporate
  • Web Hosting

Malaysia Data Center Market, By End User:

  • Information Technology & Telecom
  • Government
  • BFSI
  • Healthcare
  • Others

Malaysia Data Center Market, By Region:

  • East Malaysia
  • West Malaysia

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Malaysian Data Center Market