Market Trends of Malaysia Data Center Server Industry
IT & Telecommunication Segment to Hold 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. These four operators have recently 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 a growing 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.
- Malaysian Telcos 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, leading to the rising demand for data center racks in the region.
Understand The Key Trends Shaping This Market
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Blade Servers to Grow at a Faster Pace in Coming Years
- Blade servers are designed to save space in data centers. Multiple blade servers can be housed in a single chassis, reducing the physical footprint required for your servers.
- Blade server chassis are typically designed with efficient cooling mechanisms, which can help maintain a consistent temperature in the data center and reduce cooling costs.
- Blade servers often come with integrated management tools that allow for centralized control and monitoring of all servers within the chassis.
- The growing adoption of technologies such as cloud computing, AI, IT services, Internet penetration, and social media users by businesses is propelling the use of servers in data centers.
- Blade servers are generally designed with energy efficiency in mind, helping to reduce power consumption and operational costs.
