Malaysia Data Center Market is Expected to Register a Steady CAGR During the Forecast Period
Rapid Adoption
of Cloud and Digital Transformation by Companies is expected to propel the Malaysia
Data Center Market between 2024 and 2028.
According to TechSci Research report “Malaysia Data Center Market - By Region, Competition,
Forecast and Opportunities, 2028”. Data protection has become a
worldwide concern, and it is quickly becoming a priority for the Malaysia government
as well. A data center is a physical location with networked computers, storage
systems, and computational infrastructure that businesses utilize to store,
gather, analyses, and disseminate massive quantities of data. In the age of
technology, Malaysia's data center business is rising rapidly. The country is
well-positioned to become a global center for data centers specializing in
cloud computing due to a forecast boom fueled by technologies like artificial
intelligence, machine learning, and analytics. The growing digitalization,
faster internet speed, and smart technologies process high data consumption that
has spurred the need to store and process data efficiently. In addition, the
country's digital economy and government incentives, presents attractive
investment opportunities that are expected to dramatically increase demand for
data centers in Malaysia. Colocation operators are entering the Malaysia market
via M&As and joint ventures. The benefit of geographical location, demand
for electric vehicles and green energy solutions are attracting many
investments in Malaysia. In addition, the need for secure facilities with
resilient infrastructure such as reliable and redundant power supply, cooling,
and connectivity are further increasing the demand for more data centers in the
country, increasing the capability of data center. Many enterprises are
collaborating and adopting data centers as a cost-effective solution. Moreover,
the market is anticipated to be driven by rising demand for digital age
networking, which enables businesses to progress towards digital transformation
and produce new business outcomes by utilizing new digital age technologies
like the internet of things (IoT), cloud computing, and artificial intelligence
(AI) and thus relying on different software, driving the market. This will
expedite the growth of data centers in Malaysia during the forecast period.
Moreover, the increase in smartphone
users and an increase in the need for data and high bandwidth capacity is
driving the Malaysia data center market. Malaysia's data center industry is
expanding rapidly in the age of digitization. The nation is ideally positioned
to serve as a hub for data centers specializing in cloud computing technologies
including artificial intelligence, machine learning, and advanced analytical
techniques. Measures taken by the government, such as digital economic cluster
policy to strengthen the industrial value chain, movement towards smart cities
and smart communities framework, zero emission vehicles (ZEV) production enhancing
Malaysia’s investment potentials and competitiveness in Special Economic Zones
(SEZ) specially in the East Coast Economic Region (ECER), the North Corridor
Implementation Authority (NCIA) for the North Corridor Economic Region (NCER),
and Iskandar Regional Development Authority (IRDA) for Iskandar Malaysia in
Southern Johor are aiding in the collaboration of all facets of the business
related to technological developments such as Cloud Service, Data Center, and
Software Park. Various digital programs under DBKL (Kuala Lumpur City Hall)
under its Kuala Lumpur Smart City Blueprint 2021-2025 by the Malaysian
government are expected to provide an additional backbone for the evolving Malaysia
Data center Market through 2028.
Malaysia Data Center Market is divided
based on solution, type, and end user industry. Based on solution, the market
is further bifurcated into IT infrastructure, general infrastructure, electrical
infrastructure, mechanical infrastructure, and other. Based on type, the market
is segmented into corporate and web hosting. Based on end user industry, the
market is segmented into information technology & telecom, government, BFSI,
healthcare, and others.
Based on solution, the IT
Infrastructure has showcased the lucrative market growth in 2022 because of
rising demand for digital infrastructure projects in industries such as
banking/fintech, telecommunications, energy, smart agriculture, and government.
According to the Malaysian Investment Development Authority (MIDA) report, Malaysia
is at the rim of Asia Pacific, for becoming part of advancement in IT
infrastructure as a consequence of ongoing investment. Moreover, as per International
Data Corporation (IDC), there is increased interest and demand for cloud
services among the public and private sector enterprises as one of the largest data
markets. In addition, infrastructure development is a critical success factor
that stimulates and supports economic growth. In 2022, Malaysia's total
internet users were recorded at 29.55 million, which accounted for 90% of the
total population. Furthermore, the huge investment in broadband expansion to
develop high speed internet has increased the establishment of IT
infrastructure in the country. The rising applications of IT technical training
and IT consulting, management, software/enterprise applications (ERP and CRM
systems, finance, and accounting software), data centers and data storage, and
online services are all opportunities for service providers.
Browse over XX market data Figures
spread through XX Pages and an in-depth TOC on the "Malaysia Data Center Market.”
Key market players in the Malaysia
data center market include:
- NTT
Communications Corporation
- PT
Telekom Malaysia Berhad (TM)
- PLTPRO
Data Centre Sdn Bhd
- AIMS
Data Centre Sdn Bhd
- Bridge
Data Centres Malaysia Sdn. Bhd.
- IP
ServerOne Solutions Sdn. Bhd.
- Keppel
Data Centres Holdings Pte Ltd
- GDS
Services Ltd
- Cisco
Systems Inc.
- PT Vantage
Data Centers
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“The Malaysia government has
welcomed huge Foreign Direct Investment (FDI) under the automatic route. The
strategic geographical presence and supply chain has displayed strong investor
confidence from global leaders such as Google Cloud, Amazon web services, NTT Communications
Corporation, and many more. Largest percentage of the Malaysian economy is
concentrated in West Malaysia as most of the manufacturing activities and
services industries are concentrated in the region Johor Bahru, Kuala Lumpur holding
the largest market share of data centers. Johar city has the establishment of
maximum data centers in the West Malaysia region. The introduction of 5G
networks and cloud services will strengthen the region's digital economy and
increase demand for high-bandwidth networking with scalable IT infrastructure
and optimum power efficiency for data centers. In addition, the huge volume of
internet traffic and the presence of several cloud services providers are
further attributing to the market growth. Most electronic companies are in
Special Economic Zones (SEZ) which benefit from security and protection from
the SEZ authority. Moreover, the increasing focus on infrastructure development
and the supportive government policies for the industry are expected to promote
the market to grow in the years to come in Malaysia.” said Mr. Karan Chechi,
Research Director with TechSci Research, a research-based global management
consulting firm.
“Malaysia Data Center Market
By Solution (IT Infrastructure, General Infrastructure, Electrical
Infrastructure, Mechanical Infrastructure, and Others), By Type (Corporate, Web
Hosting), By End-User (Information Technology & Telecom, Government, BFSI,
Healthcare, and Others), By Region, Competition, Forecast and Opportunities,
2028”, has
evaluated the future growth potential of Malaysia Data Center Market and
provides statistics & information on market size, structure, and future
market growth. The report's goal is to give current market knowledge and assist
decision makers in making informed investment decisions. Furthermore, the study
identifies and analyses emerging trends, as well as key drivers, challenges,
and opportunities in the Malaysia Data Center Market.
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