Malaysia data center market size to cross RM3,409m by 2025 | DagangNews Skip to main content

Malaysia data center market size to cross RM3,409m by 2025

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KUALA LUMPUR 24 July - Malaysia’s data center market size is likely to reach revenues of over RM3,409 million (US$800 million) by 2025, Malaysia Data Center Market - Investment Analysis and Growth Opportunities 2020-2025 report found. 

The report said, Malaysia is likely to gain increased traction for data center investments owing to the land shortage faced by Singapore to facilitate greenfield developments.

“The expansion by hyperscale across other Southeast Asian countries is likely to lead to an increase in investments in Malaysia. 

“Over 80% of the population has access to the Internet, the data traffic in Malaysia Internet Exchange is around 35 Gbps per day, which is expected to grow at about 5% to 10% year-on-year between 2020 and 2025,” the report highlighted as quoted in reportlinker.com.

The report offers an elaborative analysis of the Malaysian data center market investments in terms of infrastructure and geography, featuring in-depth analysis and data-driven insights on the impact of COVID-19. 

It discusses sizing and estimation for different segments with respect to the investment in data centers. 

VADS Berhad, Keppel Data Centres, Alpha Data Centre Fund, Katalyst Data Management, and Regal Orion are some of the prominent investors in the Malaysia data center market.

The report added, the Malaysian government has planned to generate 20% renewable energy by 2025. 

“To achieve the target, an US$8 billion investment is required for the renewable energy sector from the public-private partnerships and private financing. The increase in digital transformation initiatives by enterprise verticals will aid the growth of PaaS and IaaS providers such as Google and AWS, thereby boosting the market growth.

“Several Malaysian and Chinese enterprises have planned to establish an artificial intelligence (AI) park at a cost of US$1 billion. The aim is to build a commercial AI ecosystem, increase the talent, and grow AI-related research initiatives in Malaysia,” the report noted. - DagangNews.com