Malaysia Data Center Market Investment to Skyrocket with 600+ MW of Upcoming Power Capacity

The Malaysia data center market is showing ample opportunities for investments. It is one of the major markets in the ASEAN region after Singapore and Indonesia, with a share of around 15% of the overall investment in 2022 in the Southeast Asia data center market. Malaysia is a prominent location in the Southeast Asian region, with over 600 industrial estates available, creating strong opportunities for industrial development. Data center operators have also started opting for new locations apart from the major markets of Kuala Lumpur and Johor.

Data centers in Malaysia are installing UPS systems with a redundancy of N+1 with a flexible capacity of 2N, depending on client requirements. VADS’s data center facilities are equipped with multiple 2N redundant UPS systems. NTT Global Data Centers’ Cyberjaya 5 data center facility is equipped with N+1 redundancy online double conversion static UPS systems. AIMS Data Centre’s data center facility in Cyberjaya is equipped with a 2N redundant UPS system. Most data center operators are expected to procure innovative technologies such as Lithium-ion batteries and Nickel Zinc batteries.

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Generators: Rise in Adoption of Diesel Generators

In Malaysia, most data center operators are adopting N+1 redundancy of diesel generators with fuel backup of up to 24 hours. NTT Global Data Centers’ Cyberjaya 5 data center has a generator set with 20 MVA and 48 hours of fuel storage capacity. VADS data center facilities have two N+1 redundant backup generators with on-site fuel tanks.

As the electricity prices in Malaysia are low compared to other countries in Southeast Asia, most data center operators are dependent on local power grids. Therefore, the demand for efficient and high-redundancy generator sets is expected to be high in the upcoming years.

Mergers/Partnership/Acquisition

In November 2022, DigitalBridge announced the acquisition of a majority stake in Malaysia-based data center operator AIMS Data Centre; the deal is expected to close by H1 2023.

In September 2022, Keppel Data Centres announced the acquisition of Juventas DC in Malaysia, owned by Causeway DC, with an investment of around $25 million.

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In January 2022, Hatten Land, a Malaysia-based property developer, announced a partnership with Huawei to develop data centers and digital infrastructure in Malaysia.

Johor is an Emerging Location in Malaysia

Johor is an emerging data center hub in the Malaysia data center market as it is witnessing several new data center developments. Johor, also known as the Southern Gateway of Malaysia, is the second major data center hub in Malaysia in terms of data center growth after Kuala Lumpur. The Administration of Johor is working toward digitalization in the city, with initiatives such as the development of a technology hub in the city comprising human and technology assets, including information technology.

Some data center operators that have a presence in Johor include Keppel Data Centres, Bridge Data Centres, VADS, and CSF Group. The city is also witnessing the entry of several operators, such as Equinix, AirTrunk, Yondr, and GDS Services, in partnership with YTL Power, Edge Centres, YTL Data Center, and others.

Why Should You Buy This Research?

• Market size available in the investment, area, power capacity, and Malaysia colocation market revenue.
• An assessment of the data center investment in Malaysia by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across states in the country.
• A detailed study of the existing Malaysia data center market landscape, an in-depth industry analysis, and insightful predictions about industry size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Malaysia
  • Facilities Covered (Existing): 29
  • Facilities Identified (Upcoming): 14
  • Coverage: 7+ Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in Malaysia
  • Market Revenue & Forecast (2022-2028)
  • Retail and Wholesale Colocation Pricing
  • Retail Vs Wholesale Colocation Market
• The Malaysia market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

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