Mordor Intelligence has published a new report on the Malaysia Data Center Market, offering a comprehensive analysis of trends, growth drivers, and future projections.
Malaysia Data Center Market Overview
The Malaysia data center market is poised for significant growth, with projections indicating a rise from 1.26 thousand megawatts (MW) in 2025 to 2.53 thousand MW by 2030, reflecting a compound annual growth rate (CAGR) of 15.01%. This expansion is further underscored by a surge in colocation revenue, expected to increase from USD 710 million in 2025 to USD 1.87 billion by 2030, marking a CAGR of 21.41%. These developments highlight Malaysia’s strategic positioning as a key player in the Southeast Asian data center landscape.
Malaysia Data Center Market Key Trends
Infrastructure Modernization and Certifications
Malaysia continues to enhance its data center infrastructure, with 42 Tier 3 certified facilities as of 2022. These certifications highlight the country’s commitment to high reliability and operational standards, ensuring minimal downtime and strong maintainability.
Strategic Location and Digital Corridors
Data centers are strategically concentrated in digital hubs, with Cyberjaya hosting over 70% of Tier 3 certified centers. New developments like the Johor Digital District further expand the ecosystem, supported by robust connectivity and purpose-built infrastructure.
Market Consolidation and Partnerships
The industry is seeing consolidation, such as the 2022 merger of Celcom and DiGi, forming a major telecom entity. Strategic collaborations between local stakeholders and global cloud providers are also driving public sector cloud adoption, with over 1,000 servers now supporting 120 government agencies.
Sustainability and Government Incentives
The government promotes green development through incentives like the Green Investment Tax Allowance (GITA), offering significant tax relief. In response, the industry is adopting energy-efficient practices, renewable energy, and advanced cooling systems to reduce environmental impact.
Malaysia Data Center Market Segmentation:
Hotspot
- Cyberjaya-Kuala Lumpur
- Johor Bahru
- Rest of Malaysia
Data Center Size
- Large
- Massive
- Medium
- Mega
- Small
Type
- Tier 1 and 2
- Tier 3
- Tier 4
Absorption
- Non-Utilized
- Utilized
By Colocation Type
- Hyperscale
- Retail
- Wholesale
By End User
- BFSI
- Cloud
- E-Commerce
- Government
- Manufacturing
- Media & Entertainment
- Telecom
- Other End User
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Key Players
Bridge Data Centers (Chindata Group): Operates hyperscale data center facilities in Malaysia, focusing on scalable infrastructure for cloud and internet services.
Keppel DC REIT Management Pte. Ltd: Manages data center assets across Asia, including facilities in Malaysia, offering colocation and disaster recovery services.
NTT Ltd: A major global player with multiple Tier 3 certified data centers in Malaysia, providing enterprise-level data hosting and connectivity solutions.
VADS Berhad (TM One): The enterprise and public sector arm of Telekom Malaysia, operating several data centers that support government and corporate clients.
YTL Data Center Holdings Pte Ltd (YTL Power International Berhad): Developing a large-scale green data center park in Johor, integrating renewable energy to support high-density computing.
Conclusion
Malaysia data center market is on a steady growth path, supported by rising digital demand, strategic infrastructure development, and strong government backing. Key regions like Cyberjaya and Johor are emerging as central hubs, while operators focus on enhancing reliability, sustainability, and service quality. With increased investment, expanding cloud adoption, and closer collaboration between local and global players, Malaysia is becoming a competitive and dependable destination for data center operations in Southeast Asia.
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