Malaysia Data Center Cooling Market Size (2024 - 2029)

The Malaysia data center cooling market is experiencing significant growth, driven by the need to maintain optimal temperatures for IT equipment amidst the country's relatively stable climate. The market's expansion is further supported by innovative procurement strategies that address weather-related uncertainties. As the demand for data center capacity increases, with projections for substantial growth in IT load capacity and rack installations, the market size is expected to expand accordingly. The development of infrastructure, such as submarine cable systems, also contributes to the market's growth trajectory.

Malaysia Data Center Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2031)

Malaysia Data Center Cooling Market Size

Malaysia Data Center Cooling Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Market Size (2024) USD 154.80 Million
Market Size (2030) USD 720 Million
CAGR (2024 - 2030) 32.67 %
Market Concentration Medium

Major Players

Malaysia Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

Malaysia Data Center Cooling Market Analysis

The Malaysia Data Center Cooling Market size is estimated at USD 154.80 million in 2024, and is expected to reach USD 720 million by 2030, at a CAGR of 32.67% during the forecast period (2024-2030).

  • The upcoming IT load capacity of the Malaysia data center market is expected to reach around 1.5K MW by 2030. The country's construction of raised floor area is expected to increase by more than 7.8 million sq. ft by 2030.
  • The country's total number of racks to be installed is expected to reach more than 380K units by 2030. Cyberjaya-Kuala Lumpur is expected to house the maximum number of racks by 2030.
  • Close to 25 submarine cable systems are connecting Malaysia, and many are under construction. One such submarine cable that is estimated to start service in 2024 is SEA-H2X, which stretches over 5,000 km with landing points from Kuching, Malaysia.
  • Driven by rising investments in data centers, ongoing digitalization efforts, and supportive government policies, Malaysia's data center cooling market is experiencing rapid growth. For instance, Johor is reaping the rewards of its closeness to Singapore, serving as a viable alternative to the city-state. With Johor's operational capacity being double that of Kuala Lumpur, operators in Johor enjoy attractive land and power prices, along with lower construction costs than those in Singapore
  • The Malaysian government is actively courting data center investments. They're offering tax breaks, grants, and regulatory assistance to smooth the entry for foreign investors. One such initiative is the "Green Lane Pathway" by Tenaga Nasional Berhad (TNB), ensuring power access within a swift 12-month timeframe. Thanks to this unwavering government backing, Malaysia has firmly established itself as a pivotal player in the regional data center landscape

Malaysia Data Center Cooling Industry Segmentation

Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. Data center cooling is critical as data center facilities house many computer servers and network equipment that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.

The Malaysian data center cooling market is segmented into technology (air-based cooling [chillers and economizers, CRAH, cooling towers, and other air-based cooling technologies] and liquid-based cooling (immersion cooling, direct-to-chip cooling, and rear-door heat exchanger]), type of data center (hyperscaler, enterprise, and colocation), and end-user industry (IT and telecom, retail and consumer goods, healthcare, media and entertainment, federal and institutional agencies, and other end-user industries).

The market sizes and forecasts are provided in values of USD for all the above segments.

By Cooling Technology
Air-based Cooling Chiller and Economizer
CRAH
Cooling Tower (covers direct, indirect, and two-stage cooling)
Other Air-based Cooling Technologies
Liquid-based Cooling Immersion Cooling
Direct-to-Chip Cooling
Rear-Door Heat Exchanger
By Type
Hyperscalers (owned & Leased)
Enterprise (On-premise)
Colocation
By End-user Industry
IT and Telecom
Retail and Consumer Goods
Healthcare
Media and Entertainment
Federal and Institutional agencies
Other End-user Industries
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Malaysia Data Center Cooling Market Size Summary

The Malaysia data center cooling market is experiencing robust growth, driven by the increasing demand for efficient and sustainable cooling solutions as the digital landscape expands. The telecom sector's need to deliver content, mobile, and cloud services is a significant factor propelling the market forward. The development of digital infrastructures, such as data centers, is crucial for enabling 5G applications, leading to increased investments and construction of data centers in the country. This surge in data center activity necessitates advanced cooling solutions to manage thermal loads and ensure uninterrupted operations. The adoption of liquid cooling technologies and district cooling systems is gaining traction, offering energy-efficient alternatives to traditional cooling methods and contributing to reduced carbon emissions.

The competitive landscape of the Malaysia data center cooling market is marked by significant consolidation among key players, including Right Power Technology Sdn Bhd, Alfa Laval, and Huawei Technologies Co., Ltd. These industry leaders are actively expanding their market presence through strategic collaborations and innovative solutions. The introduction of advanced cooling technologies, such as hybrid liquid cooling and economizer-based systems, underscores the industry's commitment to sustainability and efficiency. Major companies like AirTrunk, Equinix, and Google are investing in hyperscale data centers, further driving the demand for sophisticated cooling solutions. As cloud storage capacity expands, the need for effective cooling systems to support high-density racks and reduce energy consumption becomes increasingly critical, shaping the future of the data center cooling market in Malaysia.

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Malaysia Data Center Cooling Market Size - Table of Contents

1. MARKET DYNAMICS
  • 1.1 Market Drivers
    • 1.1.1 Strategic Location of Malaysia as Regional Hub in the Asia-Pacific
    • 1.1.2 Data Center Investments And New Data Center Construction To Drive Market Growth
  • 1.2 Market Challenges
    • 1.2.1 Higher Energy Consumption And Need For More Water For Data Center Cooling To Hinder Market Growth
  • 1.3 Market Opportunities
    • 1.3.1 Increasing Sustainability, Emergence of Green and Renewable Data Centers To Create Opportunity For Energy Efficient Data Center Cooling
  • 1.4 Industry Ecosystem Analysis

2. MARKET SEGMENTATION
  • 2.1 By Cooling Technology
    • 2.1.1 Air-based Cooling
    • 2.1.1.1 Chiller and Economizer
    • 2.1.1.2 CRAH
    • 2.1.1.3 Cooling Tower (covers direct, indirect, and two-stage cooling)
    • 2.1.1.4 Other Air-based Cooling Technologies
    • 2.1.2 Liquid-based Cooling
    • 2.1.2.1 Immersion Cooling
    • 2.1.2.2 Direct-to-Chip Cooling
    • 2.1.2.3 Rear-Door Heat Exchanger
  • 2.2 By Type
    • 2.2.1 Hyperscalers (owned & Leased)
    • 2.2.2 Enterprise (On-premise)
    • 2.2.3 Colocation
  • 2.3 By End-user Industry
    • 2.3.1 IT and Telecom
    • 2.3.2 Retail and Consumer Goods
    • 2.3.3 Healthcare
    • 2.3.4 Media and Entertainment
    • 2.3.5 Federal and Institutional agencies
    • 2.3.6 Other End-user Industries

Malaysia Data Center Cooling Market Research FAQs

How big is the Malaysia Data Center Cooling Market?

The Malaysia Data Center Cooling Market size is expected to reach USD 0.21 billion in 2025 and grow at a CAGR of 32.67% to reach USD 1.12 billion by 2031.

What is the current Malaysia Data Center Cooling Market size?

In 2025, the Malaysia Data Center Cooling Market size is expected to reach USD 0.21 billion.

Malaysia Data Center Cooling Market Report Snapshots