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Malaysia Data Center Market to Witness $3.97 Billion Investment Opportunities by 2029, Get Insights on 34 Existing Data Centers and 33 Upcoming Facilities across Malaysia - Arizton
[April 18, 2024]

Malaysia Data Center Market to Witness $3.97 Billion Investment Opportunities by 2029, Get Insights on 34 Existing Data Centers and 33 Upcoming Facilities across Malaysia - Arizton

CHICAGO, April 18, 2024 /PRNewswire/ -- According to Arizton's latest research report, the Malaysia data center market is growing at a CAGR of 13.92% during the forecast period.

Malaysia Data Center Market Research Report by Arizton

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Malaysia Data Center Market Report Scope

Report Attributes


Market Size (Investment)

USD 3.97 Billion (2029)

Market Size (Area)

883 Thousand Sq. Feet (2029)

Market Size (Power Capacity)

163 MW (2029)

CAGR Investment (2023-2029)

13.92 %

Colocation Market Size (Revenue)

USD 1.23 Billion (2029)

Historic Year


Base Year


Forecast Year


Over the next few years, Malaysia is poised to witness significant growth in data center investments, driven by the influx of operators like AirTrunk, Equinix, Princeton Digital Group, and other leading companies. Key hubs like Cyberjaya, Kuala Lumpur, and Johor Bahru are expected to see heightened activity, hosting most of the country's data centers.

The wholesale colocation sector is projected to experience a revenue surge fueled by major cloud players like Microsoft, Google, and AWS. These companies have unveiled plans to establish dedicated cloud regions within Malaysia, with expected timelines for deployment within the next one to two years. This trend underscores Malaysia's growing importance as a regional hub for data infrastructure and cloud services.

Malaysia is among the top expensive markets globally for developing data centers. Malaysia's data center construction cost in 2023 stood at about $8.5-$10 million per MW, making it the costliest market in the APAC region after Singapore and Jakarta.

Investment Opportunities in the Malaysia Data Center Market

  • In November 2023, ST Telemedia Global Data Centres announced its plans to develop a new data center campus in Johor. The construction of the first building is likely to begin soon and become operational by 2025. The company formed a joint venture with Basis Bay to develop a new data center campus with two buildings, Cyberjaya DC.2 and STT Kuala Lumpur 1 in Cyberjaya, Selangor.
  • In October 2023, EDGNEX Data Centres by DAMAC announced its plans to enter the APAC market for the first time; the company is considering a facility in Cyberjaya, Selangor. The expected investment can cross the $52 million mark.
  • In October 2023, Infinaxis Data Centre Holdings, the joint venture between Gaw Capital Partners and A3 Capital, announced the construction of its first data center facility in Cyberjaya. The facility will have 10 data halls and will likely be operational by Q2 2025.
  • In September 2023, EdgeConneX announced its plans to expand its footprint in Malaysia with the development of three data centers sites across Bukit Jalil, Kuala Lumpur, and Cyberjaya. The company plans to develop data centers in partnership with Cyberview.

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Market Trends

  • According to IRENA, in 2022, hydroenergy accounted for around 69% of the renewable energy capacity in Malaysia, followed by solar energy, which contributed about 21%, along with a 10% contribution by bioenergy.
  • Malaysia aims to achieve the target of net-zero carbon emissions by 2050. To make this goal a reality, WWF-Malaysia is partnering with Boston Consulting Group to develop an independent joint study on the country's optimal net zero pathway.
  • The government of Malaysia has established a green tariff scheme to support its carbon-neutrality target. Under the scheme, subscribers can get electricity from solar or hydro sources instead of fossil fuel sources.

Mergers, acquisitions, joint ventures, and partnerships are key strategies employed by operators to expand their portfolios and global footprint. For example:

  • In December 2023, Chindata Group merged with BCPE Chivalry Merger Sub, a wholly owned subsidiary of BCPE Chivalry Bidco, completing its transition to a private company from a public one.
  • November 2023 saw ST Telemedia Global Data Centres, in a joint venture with Basis Bay, announcing plans to develop a new data center campus with two buildings in Cyberjaya, Selangor.
  • A3 Capital and Gaw Capital Partners formed a joint venture in February 2023 to establish Infinaxis Data Centre Holdings to develop and operate data centers across Malaysia and Southeast Asia.
  • MN Holdings, an engineering services and solutions company, signed a Memorandum of Understanding (MoU) in April 2023 with Shanghai DC-Science, outlining an investment of approximately $600 million to develop a data center site at the Sedenak Tech Park, Johor.

Why Should You Buy This Research?

  • Market size is available regarding investment, area, power capacity, and Malaysia colocation market revenue.
  • An assessment of the data center investment in Malaysia by colocation, hyperscale, and enterprise operators.
  • Investments in the area (square feet) and power capacity (MW) across cities in the country.
  • A detailed study of the existing Malaysia data center market landscape, an in-depth market analysis, and insightful predictions about market size during the forecast period.
  • Snapshot of existing and upcoming third-party data center facilities in Malaysia
    • Facilities Covered (Existing): 34
    • Facilities Identified (Upcoming): 33
    • Coverage: 9 Locations
    • Existing vs. Upcoming (Area)
    • Existing vs. Upcoming (IT Load Capacity)
  • Data Center Colocation Market in Malaysia
    • Colocation Market Revenue & Forecast (2023-2029)
    • Wholesale vs. Retail Colocation Revenue (2023-2029)
    • Retail Colocation Pricing
    • Wholesale Colocation Pricing
  • The Malaysia data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
  • A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
  • Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
  • A transparent research methodology and the analysis of the demand and supply aspects of the industry.

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Post-Purchase Benefit???????????????????????????? 

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  • 10% off on customization

The Report Includes the Investment in the Following Areas:

  • IT Infrastructure
    • Servers
    • Storage Systems
    • Network Infrastructure
  • Electrical Infrastructure
    • UPS Systems
    • Generators
    • Switches & Switchgears
    • PDUs
    • Other Electrical Infrastructure
  • Mechanical Infrastructure
    • Cooling Systems
    • Rack Cabinets
    • Other Mechanical Infrastructure
  • Cooling Systems
    • CRAC and CRAH
    • Chillers
    • Cooling Tower and Dry Coolers
    • Other Cooling Units
  • General Construction
    • Core & Shell Development
    • Installation & Commissioning Services
    • Building & Engineering Design
    • Fire Detection & Suppression Systems
    • Physical Security
    • Data Center Infrastructure Management (DCIM)
  • Tier Standard
    • Tier I & Tier II
    • Tier III
    • Tier IV 
  • Geography
    • Selangor
    • Johor
    • Other States

Vendor Landscape

IT Infrastructure Providers

  • Cisco Systems
  • Dell Technologies
  • Fujitsu
  • Hewlett Packard Enterprise
  • Huawei Technologies
  • IBM
  • Inspur
  • Lenovo
  • NetApp

Data Center Construction Contractors & Sub-Contractors

  • Advance Power Engineering
  • Asima Architects
  • AVO Technology
  • B-Global Tech
  • CTC-Global
  • CSF Group
  • Cyclect Group
  • DSCO Group
  • Gamuda
  • GCM Technologies
  • HSS Engineers
  • ISG
  • Kienta Engineering Construction
  • LSK Engineering
  • MES Group
  • M+W Group (Exyte)
  • MN Holdings
  • Nakano
  • Powerware Systems
  • S5 Engineering
  • Shaw Architect
  • Sunway Construction Group
  • Unique Central

Support Infrastructure Providers

  • ABB
  • Caterpillar
  • Cummins
  • Eaton
  • Fuji Electric
  • HITEC Power Protection
  • KOHLER Power
  • Legrand
  • Mitsubishi Electric
  • Narada Power Source
  • Piller Power Systems
  • Rittal
  • Rolls-Royce
  • Schneider Electric
  • Siemens
  • Socomec
  • Trane
  • Vertiv

Data Center Investors

  • Bridge Data Centres
  • Edge Centres
  • GDS Services
  • Keppel Data Centres
  • Open DC
  • TM One
  • Vantage Data Centers
  • YTL Data Center Holdings

New Entrants

  • AirTrunk
  • Amazon Web Services (AWS)
  • EdgeConneX
  • Equinix
  • FutureData (Cyclect Group + TSG Group)
  • Google
  • i-Berhad
  • Infinaxis Data Centre Holdings
  • MN Holdings + Shanghai DC-Science
  • Microsoft
  • Princeton Digital Group
  • Regal Orion
  • Singtel
  • ST Telemedia Global Data Centres
  • Yondr

To Know More, Download the Free Sample Report:

Key Questions Answered in the Report:?? 

What factors are driving the Malaysian data center industry?

How big is the Malaysia data center market?

How many MW of power capacity will be added across Malaysia during 2024 to 2029?

What is the growth rate of the Malaysia data center market?

Which states are included in the Malaysia data center market report?

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