Malaysia Data Center Market Size and Research 2022, CAGR Status, Growth Analysis by Countries, Development Factors, Business Updates and Strategies till 2026: Ken Research

The report titled Malaysia Data Center and Market Outlook to 2026 – Growing Demand from SMEs, Rising Internet Penetration Rate and Rising Number of Facilities to Drive the Malaysian Data Center market in the near future provides a comprehensive analysis of data center market in Malaysia. The report focuses on overall market size in terms of revenue generated by data centers; market segmentation by Type of data center facility (Co-location, Managed and Hyperscale), By Co-location (Retail and Wholesale co-location), By End Users (IT/ITes, BFSI, Government and Others). The report also covers the overall comparative landscape, trends and growth drivers, issues and challenges along with pricing analysis from the major players in the Malaysian Data Center Market. The report concludes with future projections and upcoming Data Center projects highlighting the major opportunities and cautions.

Malaysia Data Center Market Overview and Size

Malaysia data center market was observed to grow with an augmenting growth rate during the review period 2016-2026F. The Malaysia data center market in terms of Revenue has increased at a positive double digit CAGR during the review period 2016-2021. The growth was supported by rising number of data centers, increasing digitization in the country and demand from SMEs. Increasing internet penetration in Malaysia is contributing towards the high demand for digital services in the country. Augmenting demand for the data center services is driving the DC companies to expand in terms of space to cater to the increasing demand.

Public Cloud Services Market Malaysia

Market Segmentation of Data Center Industry

By Type of Data Center (Managed, Co-location and Hyperscale): Managed data center was observed to be dominating the Malaysia data center market in terms of revenue with the higher preference of customers towards outsourcing services from a third party. The co-location data center constituted a significant share in the market in terms of revenue in the year 2021. Entry of cloud providers such as Microsoft and AWS and more have resulted in growing demand for wholesale co-location data centers in Malaysia. Hyperscale data centers hold the lowest share in terms of revenue for the year 2021.

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By Co-location (Retail co-location and Wholesale co-location): The retail co-location market held a significant share in terms of revenue in the year 2021. The retail co-location market was observed to dominate the co-location data center market as a retail DC is cheaper, majority companies requires few racks to store their data and the average duration of a contract in a retail DC is also lower as compared to wholesale co-location.

By End Users (IT/ITes, BFSI, Government and others): BFSI industry dominated the data center market in Malaysia with a substantial share during 2021. Digital Payments in Malaysia is increasing. The growing consumption of digital services fuels the demand for data center services as well, particularly in Malaysia’s financial services industry. Demand for data centers by the Government sector in Malaysia is driven by growing adoption of cloud-based services and is underpinned by technological advances in Government Department and Agencies. Thus, making Government sector the second largest end user industry for Data Centers in Malaysia.

Competitive Landscape

Competition within the Malaysia data center market was observed to be moderately fragmented along with the presence of both domestic and global data centers. Malaysia recorded a total of more than 40+ data centers in the year 2021. The major companies in the data center industry in Malaysia includes AIMS, TM One, Bridge Data Center, NTT Communications, CSF Advisors, Strateq, Basis Bay and others.

Major competing parameters include number of data centers, services provided, white space, number of racks, Tier level, power capacity, uptime, occupancy rate, clientele, end users served and geographical presence.

Malaysia Managed Data Center Market Future Outlook and Projections

Over the forecast period 2022-2026F, the Malaysia Data Center Revenue is further anticipated to increase at a significant double digit CAGR during the review period 2021 to 2026F. The emergence of 5G technology in Malaysia is likely to grow the adoption of IoT-enabled products in the Malaysia market further contributing to the development of data center industry.

Key Segments Covered

  • By Type of Data Centers:
  • Co-location Data Center
  • Retail Co-location
  • Wholesale Co-location
  • Managed Data Center
  • Hyperscale
  • By End Users:
  • IT/ITes
  • BFSI
  • Government
  • E-Commerce
  • Others (Education, Retail, Manufacturing, Logistics and rest)

Key Target Audience

  • Data Center companies
  • Cloud providers (Domestic and Global)
  • Managed data center companies
  • Co-location data center companies
  • Private Equity and Venture Capitalist
  • Industry Associations
  • Data Center Constructors
  • Technology providers

Time Period Captured in the Report:

  • Historical Period – 2016-2021
  • Forecast Period – 2021-2026F

Companies Covered:

  • Data Center Companies:
  • TM One
  • Bridge Data Center
  • Strateq
  • Basis Bay
  • NTT
  • HDC
  • CSF Advisors
  • Vantage DC
  • Open DC
  • IPServerOne
  • Others

Key Topics Covered in the Report

  • Malaysia Cloud Infrastructure Services Market
  • Demand & Supply Side Ecosystem of Data Center Industry in Malaysia
  • Malaysia Data Center Overview
  • Comparison of Malaysia Data Center Market with other APAC Countries (Indonesia, India, Thailand, Singapore and Hong Kong)
  • Malaysia Data Center Market Size
  • Malaysia Data Center Market Segmentation
  • Competition Framework in Malaysia Data Center Market
  • Pricing Analysis of Major Players in Malaysia Data Center Market
  • End User Analysis
  • Malaysia Data Center Market Future Outlook and Projections

Related Reports:

KSA Data Center and Cloud Services Market Outlook to 2026F – Driven by rising investments in data centers from private sector and government support towards technology and Cloud first policy

UAE Data Center and Cloud Services Market Outlook to 2026F – Driven by Rapid Digital Penetration along with Increasing Investments to meet the Rising Demand for Data Storage and Cloud Services

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Ken Research

Ankur Gupta, Head Marketing & Communications


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