Malaysia’s Data Center Market is anticipated to expand at a CAGR of roughly 7% between 2022 and 2027, with over US$2 billion to be invested, according to the recent research report of Arizton, a market research & consulting company. Investments in the Malaysian data center industries will benefit hugely due to the country’s digitalization initiatives and the implementation of IR4.0 blueprint investments.
The Malaysian data center market has recently seen considerable investments. The rising use of technology by regional enterprises, especially SMEs, highly contributes to this.
According to the research, the Malaysian government’s various tax breaks have spurred investments from colocation and hyperscale operators. Additionally, these initiatives have made it possible for data centers to be built in free trade zones.
Malaysia now has 23 data centers, and 15 more are expected to be operational or completed in the upcoming years. The most recent was when Google announced it would establish a Cloud Region in Malaysia. The current Dedicated Cloud Interconnect facilities of Google Cloud in Cyberjaya and Kuala Lumpur, which offer direct connectivity between an organization’s on-premises network and Google Cloud’s global network, will complement the new data center.
In addition to Google, Microsoft and Amazon have also been given the go-ahead to construct and operate hyperscale data centers in Malaysia. In fact, with 15 announced and ongoing projects, Malaysia’s data center supply is predicted to grow by more than three times its current capacity in the upcoming years. This covers colocation activities run by companies like Chindata, Keppel Data Centers, and AIMS Data Center.
Moreover, when it comes to location, the majority of Malaysia’s data centers have been located in Cyberjaya, which accounts for about 75% of the country’s total capacity. Interestingly, the southern state of Johor is also expanding its data center capacity to serve Singapore’s needs as well as those of the Malaysian market
Strong Demand
This bullish outlook is shared by others too. 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.
