Market Trends of Malaysia Data Center Cooling Industry
IT and Telecom Held Significant Share in 2023
- As the digital landscape expands and data centers multiply, the need for efficient and sustainable cooling solutions has seen a significant uptick. This demand is largely fueled by the telecom sector's push to offer content, mobile, and cloud services, propelling a swift expansion in data center demand. Given the critical role these facilities play, maintaining their uninterrupted operation is paramount. With the increasing interconnection of data centers and the growing demand for WAN connectivity, there's a heightened strain on network resources, leading to elevated storage needs and energy consumption, hence the imperative for effective data center cooling.
- The advent of 5G technology is poised to boost consumption rates, driving a heightened demand for robust data storage solutions in the industry. Key to unlocking the full potential of 5G applications is the advancement of digital infrastructures, particularly data centers. Consequently, an increasing number of investors are inking deals in preparation for the imminent 5G rollout.
- Many cloud providers are entering the Malaysian market. For instance, in May 2024, Google announced a significant move, with plans to invest USD 2 billion in a Malaysian data center and cloud hub. Following suit, Microsoft also made headlines in the same month, revealing a USD 2.2 billion investment aimed at propelling Malaysia's cloud and AI initiatives.
Understand The Key Trends Shaping This Market
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Liquid-based Cooling is one of the Fastest-Growing Segment During Forecast Period
- As nations urgently combat the impacts of climate change, it's imperative that future infrastructure aims to cap temperature rises at 2°C above pre-industrial levels. The focus on smart district cooling systems in Malaysia is crucial for enhancing energy demand management.
- Managing thermal loads in telecom facilities and electronic enclosures is crucial. Liquid cooling, with its significantly higher heat-carrying capacity than air, emerges as a promising solution. For instance, water can carry approximately 3,500 times more heat than air. Implementing economizer-based liquid cooling and advanced metal interfaces can slash cooling energy consumption to just 5% of the data center's total energy usage. This conserves energy and aids in lowering carbon dioxide (CO2) emissions.
- The Malaysian data center market is witnessing a surge in investments, highlighted by AirTrunk's debut in the nation, unveiling plans for a 150+ MW data center. Equinix and Google have also revealed intentions to bolster Malaysia's data center landscape with their hyperscale facilities. Moreover, providers are adopting liquid cooling technology to lower power consumption in their data centers. A notable innovation in this realm combines indirect evaporative cooling (IEC) with direct-to-chip liquid cooling. This approach, especially favored by AirTrunk customers, allows for high-density rack deployment, cutting energy usage by as much as 20%. These advancements directly support the segment's growth trajectory.
