Malaysia Data Center Power Market Size (2024 - 2029)

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 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.