The Malaysia data center market is expected to grow at a CAGR of 9.41% during the 2022-2028 period, according to Arizton’s research.
The key reasons for the projected boom is due to the increase in cloud adoption, the rapid increase in digitalisation , big data, IoT technology and Smart City. These factors are resulting in a heightened demand for colocation services, cloud computing, increase in governmental initiatives, and various other factors.
The Malaysia data center market will attract investments worth US$2.25 billion in 2028 while the colocation market revenue is tipped to hit US$450 million in the same year.
Malaysia has been in the limelight this week having recently come out on top as the most desired destination for data center investment based on the Knight Frank report. The South East Asian nation topped the list with 113MW of take up in 2022 as compared to ranked second Indonesia (22MW) followed by Vietnam (2MW), Philippines (2MW) and Thailand (25MW).
The Knight Frank SEA-5 Data Centre Opportunity Index (SEA-5 Index) examines the key markets within the SEA-5 to understand each respective country’s current data centet ranking against its peers.
The growth of Malaysia’s data center sector has predominantly occurred in two key areas, namely Greater Kuala Lumpur (which includes Central Kuala Lumpur and Cyberjaya) and Johor.
