Malaysia Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

Malaysia Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

The Malaysia Data Center Market is projected to register a CAGR of 16.64%

Key Highlights

• IT Load Capacity: The IT load capacity of the Malaysian data center market may grow steadily and reach 1358 MW by 2029.
• Raised Floor Space: The country's total raised floor area is expected to increase to 7.7 million sq. ft by 2029.
• Installed Racks: The country's total number of installed racks is expected to reach 388,017 units by 2029. Cyberjaya-Kuala Lumpur is expected to house the maximum number of racks by 2029.
• DC Facilities: Due to the evolving digital trends, data center companies see huge potential in Malaysia. In terms of internet speed, Cyberview partnered with DiGi Telecommunications Sdn Bhd and opened the 5G OpenLab at RekaScape in Cyberjaya, thus increasing the potential of the 5G network.
• Leading Market Player: In 2021, VADS BERHAD (TM One) held a market share of 28.7%, with an operational capacity of 99.12 MW. The company provides an industry-low PUE of 1.8. Two of its facilities have a twin core data center with a low latency of <4ms.

Malaysia Data Center Market Trends

Tier 3 is the largest Tier Type

• The tier 1 & 2 segment of the Malaysian data center market reached an IT load capacity of 0.59 MW in 2021 and then grew to 2.39 MW in 2022. The capacity is expected to reach 3.59 MW by 2029, recording a CAGR of 5.99%. However, the tier 3 segment recorded an IT load capacity of 257.85 MW in 2021. The capacity is anticipated to grow from 457.66 MW in 2022 to 1,379.11 MW by 2029, registering a CAGR of 17.07%. The tier 3 segment has a higher growth rate than all other tiers.
• A tier 3 data center is concurrently maintainable, allowing for any planned maintenance activity of power and cooling systems to take place without disrupting the operations of computer hardware located in the data center. Most telecom operators are focusing on establishing tier 3 facilities in the country as they prevent uneven disturbances. The development of digital infrastructure, such as data centers, is central to enabling 5G applications. Various investors are also signing agreements to launch 5G services in the country. For instance, in November 2022, Malaysian telcos Celcom and DiGi approved a merger agreement. Once the two companies are fully merged, the new entity will be one of the largest carriers in Malaysia, with over 20 million subscribers.
• The tier 4 data center segment is expected to remain stagnant in the near future but will see increased opportunities over the coming years. Currently, TelcoHubeXchange and Regal Orion Sdn Bhd are the only companies with Tier 4 certified facilities in Malaysia.

Malaysia Data Center Industry Overview

The Malaysia Data Center Market is fairly consolidated, with the top five companies occupying 70.78%. The major players in this market are AIMS DATA CENTRE SDN. BHD., Bridge Data Center (Chindata Group), Keppel DC REIT Management Pte. Ltd., NTT Ltd. and VADS BERHAD (TM One) (sorted alphabetically).

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