The Malaysia Data Center Market value is set to progress at a CAGR of 15.72% from 2021 to 2026 and one of the key factors driving this growth is the demand planning and expansion by hyperscalers according to the latest publication of Technavio, a leading global technology research and advisory company.
For a seamless switch from 3G and 4G to 5G, investments in communication network infrastructure upgrades are increasing. Hyperscalers will be driven by this demand to enhance the current data center network infrastructure, and more new data centers will be built nearby the data origins to cut down on latency. During the projected period, the market under consideration will be driven by hyperscalers’ expanding use of data centers.
In Southeast Asia, including Malaysia, there is a discernible trend toward big multistory data center buildings. Building large, highrise data center facilities is becoming more common among service providers because of a lack of available land and the high cost of land acquisition.
Additionally, since data centers are extremely capital-intensive commercial buildings that require investments of up to a billion dollars, the necessity for substantial capital investment will also present a significant issue during the projection period. Consequently, there is intense pressure on all parties involved in Malaysia’s data center building and construction sector to meet deadlines and launch operations as soon as possible.
However, the Malaysian datacenter market is fragmented, and suppliers are utilizing development strategies to compete in the market by concentrating on technology advancements and building strategic partnerships.