Malaysia Data Center Construction Market Size (2024 - 2029)

The Malaysia Data Center Construction Market is poised for significant growth, with a robust expansion in its market size over the forecast period. The development of IT load capacity, raised floor space, and the installation of racks are key components driving this growth. Additionally, the construction of submarine cable systems is set to enhance connectivity, further contributing to the market's expansion. Cyberjaya-Kuala Lumpur is anticipated to be a central hub for these developments, underscoring its strategic importance in the market landscape.

Market Size of Malaysia Data Center Construction Industry

Malaysia Data Center Construction Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 2.80 Billion
Market Size (2030) USD 6.60 Billion
CAGR (2024 - 2030) 15.03 %
Market Concentration Medium

Major Players

Malaysia Data Center Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Malaysia Data Center Construction Market Analysis

The Malaysia Data Center Construction Market size is estimated at USD 2.80 billion in 2024, and is expected to reach USD 6.60 billion by 2030, growing at a CAGR of 15.03% during the forecast period (2024-2030).

Factors such as the rising demand for cloud computing among SMEs, bolstered by government regulations emphasizing local data security and amplified investments by domestic players, are pivotal in propelling the demand for data centers in the Malaysian market.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Malaysian data center construction market is expected to reach 1,460 MW by 2030.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 5.2 million sq. ft by 2030.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 263,359 units by 2030. Cyberjaya-Kuala Lumpur is expected to house the maximum number of racks by 2030.
  • Planned Submarine Cables: There are close to 23 submarine cable systems connecting Malaysia, and many are under construction. One such submarine cable that is estimated to start service in 2025 is SeaMeWe-6, which stretches over 19,200 km with landing points from Morib, Malaysia.

Malaysia Data Center Construction Industry Segmentation

Data center construction combines physical processes used to construct a data center facility. It chains construction standards with the requirements of data center operational environments.

The Malaysian data center construction market is segmented by infrastructure (electrical infrastructure (power distribution solution (PDU, transfer switches, switchgear, power panels and components, other power distribution solutions)), power back-up solution (UPS, generators), service – design & consulting, integration, support & maintenance)), (mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, in-row and in-rack cooling)), racks, other mechanical infrastructure)), general construction)), by tier type (tier-I and -II, tier-III, and tier-IV), and by end user (banking, financial services and insurance, IT and telecommunications, government and defense, healthcare, and other end users). The market sizes and forecasts are provided in value (USD) for all the abovementioned segments.

Market Segmentation - By Infrastructure
Market Segmentation - By Electrical Infrastructure
Power Distribution Solution
PDU - Basic & Smart - Metered & Switched Solutions
Transfer Switches
Static
Automatic (ATS)
Switchgear
Low-voltage
Medium-voltage
Power Panels and Components
Other Power Distribution Solutions
Power Back Up Solutions
UPS
Generators
Service - Design & Consulting, Integration, Support & Maintenance
Market Segmentation - By Mechanical Infrastructure
Cooling Systems
Immersion Cooling
Direct-to-Chip Cooling
Rear Door Heat Exchanger
In-row and In-rack Cooling
Racks
Other Mechanical Infrastructure
General Construction
Market Segmentation - By Tier Type
Tier-I and-II
Tier-III
Tier-IV
Market Segmentation - By End User
Banking, Financial Services, and Insurance
IT and Telecommunications
Government and Defense
Healthcare
Other End Users
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Malaysia Data Center Construction Market Size Summary

The Malaysia data center construction market is experiencing significant growth, driven by the increasing demand for digital infrastructure to support the expansion of 5G technology and digital services. The market is characterized by a robust development pipeline, with substantial investments in IT load capacity, raised floor space, and rack installations. Key regions such as Cyberjaya and Kuala Lumpur are emerging as major hubs, benefiting from strategic initiatives like the Multimedia Super Corridor and Malaysia Digital, which aim to attract investments and talent to bolster the country's digital economy. The presence of major telecommunications players and ongoing negotiations for 5G access further underscore the market's dynamic nature, as companies seek to enhance their infrastructure to meet the growing data demands.

The market landscape is consolidated with a few major players, including iCore Technology Sdn., Fujitsu Ltd, and AVO Technology Sdn. Bhd, who are actively expanding their operations to capitalize on the burgeoning demand. Recent developments, such as the expansion of Bridge Data Centres' campus and the construction of new facilities by Singtel and NTT Ltd, highlight the ongoing investment in data center infrastructure. These developments are complemented by strategic partnerships, like the joint venture between Zenlayer and Megaport, aimed at enhancing network connectivity and service offerings. As mobile broadband subscriptions continue to rise, particularly in regions like Selangor, the dependency on data centers is expected to increase, further driving market growth.

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Malaysia Data Center Construction Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 Market Segmentation - By Infrastructure

      1. 1.1.1 Market Segmentation - By Electrical Infrastructure

        1. 1.1.1.1 Power Distribution Solution

          1. 1.1.1.1.1 PDU - Basic & Smart - Metered & Switched Solutions

          2. 1.1.1.1.2 Transfer Switches

            1. 1.1.1.1.2.1 Static

            2. 1.1.1.1.2.2 Automatic (ATS)

          3. 1.1.1.1.3 Switchgear

            1. 1.1.1.1.3.1 Low-voltage

            2. 1.1.1.1.3.2 Medium-voltage

          4. 1.1.1.1.4 Power Panels and Components

          5. 1.1.1.1.5 Other Power Distribution Solutions

        2. 1.1.1.2 Power Back Up Solutions

          1. 1.1.1.2.1 UPS

          2. 1.1.1.2.2 Generators

        3. 1.1.1.3 Service - Design & Consulting, Integration, Support & Maintenance

      2. 1.1.2 Market Segmentation - By Mechanical Infrastructure

        1. 1.1.2.1 Cooling Systems

          1. 1.1.2.1.1 Immersion Cooling

          2. 1.1.2.1.2 Direct-to-Chip Cooling

          3. 1.1.2.1.3 Rear Door Heat Exchanger

          4. 1.1.2.1.4 In-row and In-rack Cooling

        2. 1.1.2.2 Racks

        3. 1.1.2.3 Other Mechanical Infrastructure

      3. 1.1.3 General Construction

    2. 1.2 Market Segmentation - By Tier Type

      1. 1.2.1 Tier-I and-II

      2. 1.2.2 Tier-III

      3. 1.2.3 Tier-IV

    3. 1.3 Market Segmentation - By End User

      1. 1.3.1 Banking, Financial Services, and Insurance

      2. 1.3.2 IT and Telecommunications

      3. 1.3.3 Government and Defense

      4. 1.3.4 Healthcare

      5. 1.3.5 Other End Users

Malaysia Data Center Construction Market Size FAQs

The Malaysia Data Center Construction Market size is expected to reach USD 2.80 billion in 2024 and grow at a CAGR of 15.03% to reach USD 6.60 billion by 2030.

In 2024, the Malaysia Data Center Construction Market size is expected to reach USD 2.80 billion.

Malaysia Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024-2030)