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Malaysia Data Center Rack Market Size (2024 - 2029)

The Malaysian data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium-sized enterprises, stringent government regulations for local data security, and substantial investments by domestic players. This expansion is reflected in the anticipated increase in market size, with a notable rise in IT load capacity and raised floor space. The market is also set to see a substantial number of new racks installed, particularly concentrated in the Cyberjaya-Kuala Lumpur area. Additionally, the development of submarine cable systems is expected to enhance connectivity, further supporting the market's growth trajectory.

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Market Size of Malaysia Data Center Rack Industry

Malaysia Data Center Rack Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Volume (2024) 0.13 Million units
Market Volume (2030) 0.33 Million units
CAGR (2024 - 2030) 16.60 %
Market Concentration Medium

Major Players

Malaysia Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

Malaysia Data Center Rack Market Analysis

The Malaysia Data Center Rack Market size in terms of production volume is expected to grow from 0.13 Million units in 2024 to 0.33 Million units by 2030, at a CAGR of 16.60% during the forecast period (2024-2030).

The Malaysian data center rack market reached a volume of over 98,000 in the previous year, and it is further projected to register a CAGR of 16.6% during the forecast period. 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/region.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Malaysia data center market is expected to reach 1,300 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.
  • 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 Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The Malaysian Data Center Rack Market is Segmented by rack size (quarter rack, half rack, full rack) and by end user (IT & telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

Rack Size
Quarter Rack
Half Rack
Full Rack
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Malaysia Data Center Rack Market Size Summary

The Malaysian data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from local players. The market is characterized by a shift towards fully equipped data centers to accommodate the rapid expansion of mobile broadband, e-commerce, and big data analytics. The rise in smartphone usage, coupled with discounted internet services and escalating data traffic, is further propelling the demand for data center racks. The market is moderately consolidated, with major players like Eaton Corporation, Black Box Corporation, and Schneider Electric SE focusing on expanding their regional presence and enhancing their product offerings to meet the growing needs of various sectors, including telecommunications, media, and entertainment.

The development of digital infrastructure, particularly in the telecom sector, is pivotal for enabling 5G applications, which in turn drives the demand for data center racks. The ongoing negotiations between the government and major telecom operators regarding 5G access and the recent merger agreements among Malaysian telcos underscore the sector's dynamic nature. Investments in data center facilities, such as the significant funding by TM ONE and the development of new campuses by companies like YTL Power and GDS, highlight the country's commitment to enhancing its data storage capabilities. These developments are expected to create substantial demand for data center racks, positioning Malaysia as an attractive location for hyperscalers and other large-scale data center operators.

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Malaysia Data Center Rack Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 The Rising Dominance of the 5G Network

      2. 1.2.2 Fiber Connectivity Network Expansion in the Country

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Cybersecurity Threats and Ransomware Attacks

      2. 1.3.2 Low Availability of Resources

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Malaysia Data Center Rack Market Size FAQs

The Malaysia Data Center Rack Market size is expected to reach 0.13 million units in 2024 and grow at a CAGR of 16.60% to reach 0.33 million units by 2030.

In 2024, the Malaysia Data Center Rack Market size is expected to reach 0.13 million units.

Malaysia Data Center Rack Market Report Snapshots

Malaysia Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)