Malaysia Data Center Networking Market Size (2024 - 2029)

Malaysia Data Center Networking Market Analysis

The Malaysia Data Center Networking Market size is estimated at USD 301.32 million in 2024, and is expected to reach USD 521.61 million by 2029, growing at a CAGR of 11.60% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

• Under Construction IT Load Capacity: The upcoming IT load capacity of the Malaysia data center market is expected to reach 1300 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by more than 7.5 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 380 K units by 2029. Cyberjaya-Kuala Lumpur is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 25 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 Kilometers with landing points from Morib, Malaysia.
• As a part of the National Energy Policy 2022-2040 ("NEP"), the Malaysian Government developed the Aspiration, which is aimed at producing a carbon Nation in 2040. The short-term implementation plan of the energy ambition is to develop a new Energy Efficiency and Conservation Act "EECA," which will set minimum performance standards for some types of energy-intensive industrial equipment in order to implement mandatory energy audits on certain categories of consumers as well as penalties for failing to meet them.
• In support of the above policy and to reduce energy consumption, the transformation of data centers is required; key players focus on developing a green standard for data centers in Malaysia, which results in increasing the demand for Infrastructure management. Hence, such factors are expected to drive market growth during the forecast period.

Malaysia Data Center Networking Industry Segmentation

Data center networking refers to the set of technologies, protocols, and hardware used to connect physical and network-based devices and manage the network infrastructure, storage, and processing of applications and data. Data center networking is very critical for 100% uptime of data centers. In the current web-connected world, business workloads are executed on single computers, hence leading to the need for data center networking. Networks provide servers, clients, applications, and middleware with a standard plan to stage the execution of workloads and also to manage access to the data produced.

The Malaysia data center networking market is segmented by component type (product (Ethernet switches, routers, storage area network (SAN), application delivery controller (ADC), and other networking equipment), services (installation & integration, training & consulting, support & maintenance)), by end-user (IT & telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.