Malaysia Data Center Power Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 317.80 Million |
| Market Size (2029) | USD 558.30 Million |
| CAGR (2024 - 2029) | 12.60 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Malaysia Data Center Power Market Analysis
The Malaysia Data Center Power Market size is estimated at USD 317.80 million in 2024, and is expected to reach USD 558.30 million by 2029, growing at a CAGR of 12.60% 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 IT load capacity of the Malaysian 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 380K units by 2029. Cyberjaya-Kuala Lumpur is expected to house the maximum number of racks by 2029.
- With domestic energy production, Malaysia could become self-sufficient. This country's energy production units produce 163 billion KWh of electricity, accounting for 109% of its own consumption. Despite this, Malaysia trades energy to foreign countries. Besides pure consumption, there is an important role played by production, imports and exports.
- Further, as part of the National Energy Policy 2022-2040 ("NEP"), Malaysian Government had developed the aspiration to produce a Low carbon Nation 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 and penalties for failing to meet them.
- In support of the above policy and to reduce energy consumption, key market players are focusing on introducing efficient power management systems such as PDUs, busways, and UPS for the purpose of controlling unnecessary expenditures in data centers, which is expected to increase market growth.
- 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.
Malaysia Data Center Power Market Trends
The IT and Telecommunication Segment Holds a Major Share in the Market
- Malaysia is going through an extended negotiation phase in the telecom sector. The two sides here are the government and the four main operators in the Malaysian telecom landscape: Maxis Berhad, Celcom Axiata Berhad, Digi Telecommunications, and U Mobile. In 2023, these four operators have requested a review of the government’s 5G access offer as they want at least a 51% stake in the government-owned 5G agency DNB.
- The development of digital infrastructures, such as data centers, is central to enabling 5G applications. With this, various investors are signing an agreement for the 5G launch. For instance, in November 2022, Malaysian telcos Celcom and DiGi approved the merger agreement. Once the two companies are fully merged, the new entity will be one of the largest carriers in Malaysia, with over 20 million subscribers.
- In context to data center investment for telecom, in the recent past, TM ONE, a business unit of state-controlled telecommunications company Telekom Malaysia, invested up to MYR 300 million (USD 70.94 million) for the development of a data center in Johor Bahru to cater to the increasing demand from foreign entities. The facility is currently constructed as a core data center. With the growing scope of 5G in Malaysia, the data flow will increase exponentially, catering to the need for colocation.
- Celcom and DiGi have also approved a merger agreement. Once the two companies are fully merged, the new entity will be the largest carrier in Malaysia, with over 20 million subscribers. The company also said that the implementation of 5G technology would have a positive impact of MYR 150 billion on the country’s GDP and create 750,000 jobs.
- Moreover, rising smartphone users, coupled with discounted internet services and the increasing data traffic per smartphone, drive the demand for telecom services, creating more need for data storage space leads to rising demand for data center power infrastructure in the region.
Monitored PDUs to Hold a Significant Share in the Market
- Electricity has become a critical factor in driving Malaysia's economy and ensuring long-term progress and lifestyles for millions of Malaysians. The demand for power in Malaysia is likely to exceed the total GDP over the long term, driven by the ongoing growth of the economy, industrial development, and urbanization. Electricity consumption is rising at all levels and is expected to increase by 2.37 times to 248,063.8 gigawatts by 2050, with the industrial sector accounting for the majority share.
- Energy security and equity are put at considerable risk by the above-mentioned cases. To address this, the government of Malaysia has planned a decrease in the use of fossil fuels, enhanced energy efficiency in industrial and commercial sectors, and increased the share of renewable energy. The Federal Government's commitment to energy transition is illustrated by the introduction of a National Energy Strategy, 2022-2040 (DTN). By promoting increased demand-side management and encouraging the development of green technologies, as well as by strengthening the energy sector workforce to take into account future industry needs, DTN is leading pragmatic steps towards a cleaner energy mix.
- In addition, increasing focus on digitalization, internet penetration (reached 96.8% by the start of 2023 from 89.6% during the same period in 2022), and e-commerce sales across the country create more need for storage facilities, resulting in huge demand for data centers and a rise in power consumption. Thus, the increasing demand for data storage has led to the deployment of intelligent power distribution units (PDUs) against simple multi-socket rack installations with server and network equipment, which optimize power consumption in data centers.
- Monitored rack PDUs are essential components in data center and server room infrastructure, providing real-time monitoring of power usage, voltage, current, and other electrical parameters. This data helps administrators make informed decisions about power allocation and capacity planning.
- By tracking power usage trends, administrators can plan for future growth and ensure that power capacity is not exceeded, preventing overloads that could lead to equipment failures. Also, it helps identify inefficiencies and optimize energy usage. This can lead to cost savings and a reduced environmental footprint by eliminating unnecessary power consumption. Also, it allows administrators for remote access and control, reducing the need for physical presence and minimizing operational disruptions.
- Because of the above advancements and the necessity to reduce electricity consumption as per government measures in the country, key players were focusing on introducing energy-efficient products into the market. In May 2023, Eaton, which provides the power management service, launched G3 Universal Input Rack PDUs with dynamic C39 outlets capable of accommodating different plug configurations and input voltage requirements. To meet the most diverse data center rack power requirements, G3UPDU has added new features.
- In May 2023, Legrand, a significant global provider of electrical and digital building infrastructures, introduced the next generation of intelligent rack PDUs PRO4X and Raritan PX4; these new intelligent rack PDU designs revolutionize capacity planning, environmental monitoring, physical and digital access control, workload optimization, and uptime initiatives. Such developments in the segment are predicted to boost the market’s growth during the forecast period.
Malaysia Data Center Power Industry Overview
Upcoming DC construction projects in the country are expected to increase the demand in the Malaysian data center power market in the coming years. The Malaysian data center power market is moderately consolidated with some players in the market, including ABB Ltd, Cummins Inc., Eaton Corporation, Legrand Group, and Vertiv Group Corp. These major players, with a prominent market share, focus on expanding their regional customer base.
- August 2023: Legrand announced the launch of the new Starline Series-S Track Busway power distribution system, which has an IP54 ingress-protection rating, which indicates that it is splashproof and dust-resistant.
- December 2023: Cummins Inc. introduced three new generator models, C1760D5, C1875D5, and C2000D5B, with capacities ranging from 1700 kVA to 2000 kVA. These models are powered by the KTA50 engine series and are designed to meet diverse power needs.
Malaysia Data Center Power Market Leaders
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ABB Ltd.
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Cummins Inc.
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Eaton Corporation.
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Legrand Group
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Vertiv Group Corp.
*Disclaimer: Major Players sorted in no particular order
Malaysia Data Center Power Market News
- December 2023: Eaton, an intelligent power management company, announced the launch of its new Rack PDU G4 (4th generation) that provides a high security and business continuity data center. It is also combined with C39 outlets that securely connect both C14 and C20 power cords, backed by a locking mechanism and a built-in high retention system that secures the power cord.
- November 2023: ABB Ltd announced the launch of the Protecta Power panel board, designed for industrial, commercial, and institutional buildings. It is integrated with digital monitoring and control technology, enhancing durability and safety.
Malaysia Data Center Power Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Adoption of Mega Data Centers and Cloud Computing
4.2.2 Increasing Demand to Reduce Operational Costs
4.3 Market Restraints
4.3.1 High Cost of Installation and Maintenance
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Power Infrastructure
5.1.1 Electrical Solution
5.1.1.1 UPS Systems
5.1.1.2 Generators
5.1.1.3 Power Distribution Solutions
5.1.1.3.1 PDU
5.1.1.3.2 Switchgear
5.1.1.3.3 Critical Power Distribution
5.1.1.3.4 Transfer Switches
5.1.1.3.5 Remote Power Panels
5.1.1.3.6 Others
5.1.2 Service
5.2 End User
5.2.1 IT and Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media and Entertainment
5.2.5 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 ABB Ltd
6.1.2 Caterpillar Inc.
6.1.3 Cummins Inc.
6.1.4 Eaton Corporation
6.1.5 Legrand Group
6.1.6 Rolls-Royce PLC
6.1.7 Vertiv Group Corp.
6.1.8 Schneider Electric SE
6.1.9 Rittal GmbH & Co. KG
6.1.10 Fujitsu Limited
6.1.11 Cisco Systems Inc.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Malaysia Data Center Power Industry Segmentation
Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, which provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions tailored to the specific needs of data centers. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.
The Malaysian data center power market is segmented by power infrastructure (electrical solution (UPS systems, generators, and power distribution solutions (PDU, switchgear, critical power distribution, transfer switches, remote power panels, and others)) and service) and end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| Power Infrastructure | ||||||||||||
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| Service |
| End User | |
| IT and Telecommunication | |
| BFSI | |
| Government | |
| Media and Entertainment | |
| Other End Users |
Malaysia Data Center Power Market Research Faqs
How big is the Malaysia Data Center Power Market?
The Malaysia Data Center Power Market size is expected to reach USD 317.80 million in 2024 and grow at a CAGR of 12.60% to reach USD 558.30 million by 2029.
What is the current Malaysia Data Center Power Market size?
In 2024, the Malaysia Data Center Power Market size is expected to reach USD 317.80 million.
Who are the key players in Malaysia Data Center Power Market?
ABB Ltd., Cummins Inc., Eaton Corporation., Legrand Group and Vertiv Group Corp. are the major companies operating in the Malaysia Data Center Power Market.
What years does this Malaysia Data Center Power Market cover, and what was the market size in 2023?
In 2023, the Malaysia Data Center Power Market size was estimated at USD 277.76 million. The report covers the Malaysia Data Center Power Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Malaysia Data Center Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Malaysia Data Center Power Industry Report
Statistics for the 2024 Malaysia Data Center Power market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Malaysia Data Center Power analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
