Malaysia data center market size will witness investments of USD 1.4 billion by 2026, growing at a CAGR of 7% during 2021-2026.

This report offers analysis on the Malaysia Data Center market share and elaborative analysis of the existing and upcoming facilities, datacenter investments in terms of IT, electrical, mechanical infrastructure, general construction, and geography. It discusses market sizing and estimation for different segments with respect to the investment in the facilities.

Malaysia is a mature market for data centers and has a strong presence in the Southeast Asian region. The country is witnessing investments in around five facilities, expected to be operational in the next 2-3 years. Malaysia has abundant reserves of resources and favorable government policies for data centers, which will be significant factors driving the growth of the market. Malaysia is currently home to over 20 colocation data center facilities. Retail colocation dominates the market in terms of revenue share.

What is a Data Center?

A data center is a facility that centralizes an organization’s shared IT operations and equipment for the purposes of storing, processing, and disseminating data and applications. Because they house an organization’s most critical and proprietary assets, data centers are vital to the continuity of daily operations. Consequently, the security and reliability of data centers and their information are among any organization’s top priorities.

In the past, data centers were highly controlled physical infrastructures, but the public cloud has since changed that model. Except where regulatory restrictions require an on-premises data center without internet connections, most modern data center infrastructures have evolved from on-premises physical servers to virtualized infrastructure that supports applications and workloads across multi-cloud environments.

The Role of the Data Center

Data centers are an integral part of the enterprise, designed to support business applications and provide services such as:

Data storage, management, backup and recovery
Productivity applications, such as email
High-volume e-commerce transactions
Powering online gaming communities
Big data, machine learning and artificial intelligence

Today, there are reportedly more than 7 million data centers worldwide. Practically every business and government entity builds and maintains its own data center or has access to someone else’s, if not both models. Many options are available today, such as renting servers at a colocation facility, using data center services managed by a third party, or using public cloud-based services from hosts like Amazon, Microsoft, Sony and Google.

The Core Components of a Data Center

Data center architectures and requirements can differ significantly. For example, a data center built for a cloud service provider like Amazon satisfies facility, infrastructure and security requirements that significantly differ from a completely private data center, such as one built for a government facility that is dedicated to securing classified data.

Regardless of classification, an effective data center operation is achieved through a balanced investment in the facility and the equipment it houses. In addition, since data centers often house an organization’s business-critical data and applications, it’s essential that both facility and equipment are secured against intruders and Cyberattacks

The primary elements of a data center break down as follows:

Facility – the usable space available for IT equipment. Providing round-the-clock access to information makes data centers some of the world’s most energy-consuming facilities. Design to optimize space and environmental control to keep equipment within specific temperature/humidity ranges are both emphasized.
Core components – equipment and software for IT operations and storage of data and applications. These may include storage systems; servers; network infrastructure, such as switches and routers; and various information security elements, such as firewalls.
Support infrastructure – equipment contributing to securely sustaining the highest availability possible. The Uptime Institute has defined four tiers of data centers, with availability ranging from 99.671% to 99.995%. Some components for supporting infrastructure include:
- Uninterruptible Power Sources (UPS) – battery banks, generators and redundant power sources.
- Environmental control – computer room air conditioners (CRAC); heating, ventilation and air conditioning (HVAC) systems; and exhaust systems.
- Physical security systems – biometrics and video surveillance systems.
Operations staff – personnel available to monitor operations and maintain IT and infrastructure equipment around the clock.

Data centers have evolved significantly in recent years. As enterprise IT needs continue to move toward on-demand services, data center infrastructure has shifted from on-premises servers to virtualized infrastructure that supports workloads across pools of physical infrastructure and multi-cloud environments.

KEY HIGHLIGHTS OF THE REPORT:

Regal Orion is constructing its Shinsei Malaysia 1 data center facility according to Tier IV standards.
In 2021, NTT Global Data Centers’ opened the CBJ 5 facility, which is equipped with DCIM solutions such as real-time monitoring of the facility’s power consumption, temperature, and humidity.
The IoT industry in the region is expected to account for over USD 10 billion by 2025.
The Malaysian government aims to achieve 50% cloud adoption in cloud data centers in Malaysia by 2024.
The Malaysian ICT market witnessed spending of around USD 17 billion in 2020, which is expected to grow by around 3% to 5% YoY, with increased digitalization of enterprise business environments.
Keppel Data Centers have adopted 42U racks and offers flexible rack size in the country.

MALAYSIA DATA CENTER MARKET INSIGHTS

In 2021, Cloud service provider Microsoft planned to establish the first data center region in Malaysia, followed by AWS, and Google which has plans to establish cloud regions in Malaysia.
The Kulai Iskandar Data Exchange (KIDEX) has over 700 acres of industrial land allocated for data center development, and access to around 600 MW of power.
The Malaysia data center market will witness the installation of hybrid storage systems that include high-performance HDD and SSDs.
5G networks will boost the region’s digital economy and increase the demand for high bandwidth networking infrastructure.
In the data center market in Malaysia, mostly 42U racks are used and are expected to dominate throughout the forecast period, along with increased adoption of 45U-47U rack units.
The market in Malaysia was witnessing several new announcements and launches of new projects across the country in the second half of 2020, including investments from major colocation providers and cloud service providers during the COVID-19 pandemic.
Malaysia is also planning to develop the next smart city project in Johor, being developed with the Internet of Things (IoT), artificial intelligence, big data, 5G technology, and autonomous vehicles.
The Malaysian ICT market witnessed spending of around USD 17 billion in 2020, which is expected to grow by around 3%-5% YOY, with increased digitalization of enterprise business environments.

MALAYSIA DATA CENTER MARKET VENDOR LANDSCAPE

Malaysia data center market comprises several IT infrastructure providers, construction contractors and sub-contractors, support infrastructure providers, and investors. Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise (HPE), Huawei Technologies, IBM, Inspur, Lenovo, NetApp, NEC Corporation are the leading IT infrastructure provider across the region. Cisco Systems introduced a new software solution for on-premises cloud environments, which simplifies the IT operations.

IT Infrastructure providers

Cisco Systems
Dell Technologies
Fujitsu
Hewlett Packard Enterprise (HPE)
Huawei Technologies
IBM
Inspur
Lenovo
NetApp
NEC Corporation

Construction Contractors & Sub-Contractors

Asima Architects
AVO Technology
B-Barcelona Consulting
DSCO Group
ISG
NTT Facilities
Nakano Corporation
Powerware Systems
S5 Engineering
Shaw Architect

Support infrastructure providers

ABB
Caterpillar
Cummins
Eaton
Fuji Electric
HITEC Power Protection
Legrand
Mitsubishi Electric
Rittal
Rolls-Royce Power Systems
Schneider Electric
Vertiv Group

Data center investors

AIMS Data Centre
Bridge Data Centres
Keppel Data Centres
NTT Global Data Centers
Regal Orion
VADS

EXISTING VS. UPCOMING DATA CENTERS

Existing Facilities in the country (Area and Power Capacity)
Cyberjaya & Other locations (Kuala Lumpur, Johor, Shah Alam, & Penang)
List of Upcoming Facilities in the country (Area and Power Capacity)

WHY SHOULD YOU BUY THIS RESEARCH?

Market size available in terms of investment, area, power capacity, and colocation revenue.
An assessment of the Malaysia data center market investment by colocation, hyperscale, and enterprise operators.
Data center investments in terms of area (square feet) and power capacity (MW) across Malaysia.
A detailed study of the existing Malaysia data center market landscape, an in-depth industry analysis, and insightful predictions about the Malaysia data center market size during the forecast period.
Snapshot of existing and upcoming third-party facilities in Malaysia
Facilities Covered (Existing): 23
Facilities Identified (Upcoming): 5
Coverage: Cyberjaya & Other locations (Kuala Lumpur, Johor, Shah Alam, & Penang)
Existing vs. Upcoming (Data Center Area)
Existing vs. Upcoming (IT Load Capacity)
Data center colocation market in Malaysia by revenue & forecast (2020-2026)
Retail Colocation Pricing
Wholesale Colocation Pricing
Classification of the Malaysia data center market investments into multiple segments and sub-segments (IT, electrical, mechanical, general construction services, and tier standard) with market sizing and forecast.
A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the data center market.
Business overview and product offerings of prominent IT infrastructure providers, construction contractors and sub-contractors, support infrastructure providers, and investors operating in the market.
A transparent research methodology and the analysis of the demand and supply aspect of the market.

For more information about this report visit https://www.researchandmarkets.com/r/dfh1f8

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Malaysia Data Center Market Investment Analysis and Growth Report 2021-2026