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Malaysia Data Center Server Market Size (2024 - 2029)

The Malaysia data center server market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium enterprises, government regulations for local data security, and rising investments from domestic players. This expansion is reflected in the market's capacity and infrastructure developments, including the construction of IT load capacity, raised floor space, and the installation of racks. Additionally, the development of submarine cable systems is enhancing connectivity, further supporting the market's growth trajectory.

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Market Size of Malaysia Data Center Server Industry

Malaysia Data Center Server Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 1.9 Billion
Market Size (2029) USD 4.10 Billion
CAGR (2024 - 2030) 16.60 %
Market Concentration High

Major Players

Malaysia Data Center Server Market Major Players

*Disclaimer: Major Players sorted in no particular order

Malaysia Data Center Server Market Analysis

The Malaysia Data Center Server Market size is estimated at USD 1.9 billion in 2024, and is expected to reach USD 4.10 billion by 2029, growing at a CAGR of 16.60% during the forecast period (2024-2029).

The Malaysia data center server market reached a value of USD 1.4 billion 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.

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 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 Server Industry Segmentation

A data center server is basically a high-capacity computer computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.

The Malaysia data center server market is segmented by form factor (blade server, rack server, and tower server), and by 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) for all the above segments.

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Malaysia Data Center Server Market Size Summary

The Malaysia data center server 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 robust expansion in IT load capacity, raised floor space, and the number of racks, with Cyberjaya-Kuala Lumpur anticipated to be a key hub. The development of digital infrastructure, including data centers, is crucial for supporting 5G applications, which is further emphasized by ongoing negotiations in the telecom sector involving major operators like Maxis Berhad, Celcom Axiata Berhad, Digi Telecommunications, and U Mobile. These developments are complemented by strategic investments, such as TM ONE's significant funding for a data center in Johor Bahru, aimed at meeting the growing demand from foreign entities and supporting the increasing data flow associated with 5G technology.

The competitive landscape of the Malaysia data center server market is relatively low, with major players like Dell Inc., Cisco Systems Inc., Kingston Technology Company Inc., Hewlett Packard Enterprise, and Fujitsu Limited focusing on expanding their presence through strategic collaborations. Innovations such as Cisco's UCS X servers, which significantly reduce energy consumption, and Dell's Generative Artificial Intelligence Solutions, are shaping the market dynamics. The adoption of blade servers, known for their space and energy efficiency, is also on the rise, driven by the growing use of cloud computing, AI, and other technologies. These advancements are not only enhancing operational efficiency but also addressing the increasing demand for data storage and processing capabilities in the region.

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Malaysia Data Center Server Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increase in construction of new data centers, development of internet infrastructure

      2. 1.2.2 Increasing adoption of cloud and IoT services

    3. 1.3 Market Restraints

      1. 1.3.1 Rising CapEx for data center construction

    4. 1.4 Value Chain / Supply Chain Analysis

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

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      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 Form Factor

      1. 2.1.1 Blade Server

      2. 2.1.2 Rack Server

      3. 2.1.3 Tower Server

    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-User

Malaysia Data Center Server Market Size FAQs

The Malaysia Data Center Server Market size is expected to reach USD 1.9 billion in 2024 and grow at a CAGR of 16.60% to reach USD 4.10 billion by 2029.

In 2024, the Malaysia Data Center Server Market size is expected to reach USD 1.9 billion.

Malaysia Data Center Server Market Report Snapshots

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