Throughout the review period, a rising growth rate in the Malaysian data center market was seen. Revenue growth for the Malaysian data center market has been positive double digit CAGR over the research period. An increase in data centers, a country-wide increase in digitization, and demand from SMEs all contributed to the growth. The strong demand for digital services in Malaysia is a result of the country's rising internet adoption rate. The DC firms are being forced to increase their capacity in order to meet the rising demand for data center services. It is also expected that during the study period, the revenue from Malaysian data centers will grow at a considerable double-digit CAGR. The introduction of 5G technology in Malaysia is probably going to increase the market's acceptance of IoT-enabled goods, which will accelerate the growth of the data center sector.
AWS, Microsoft, Google, Alibaba, and other cloud service providers are present in the nation. For example, the government has chosen Alibaba Cloud to help the regional SMEs, businesses, and government organizations. There have been significant DC investments in Malaysia as a result of the expanding use of smart devices and the increased need for IoT and big data analytics technology. More data has been generated as a result of the development in gaming popularity and the rapid digitization of several industries, including BFSI, manufacturing, IT, and logistics, increasing need for DC in the nation. Big data technology enable businesses to store vast amounts of data, evaluate that data, and make better decisions. Healthcare, education, BFSI, transportation, professional services, operators of smart cities, and the government are just a few of the businesses in Malaysia that will be key users of big data solutions throughout the course of the projected period and contribute to the growth of the sector.
In Malaysia, a data center industry trend that is anticipated to have a favourable effect over the next several years is the move toward massive data center facilities. Building large, multistory data center facilities is becoming more common among service providers because to a lack of available land and the high cost of land acquisition. Colocation service providers and CSPs want to construct data centers with larger gross floor areas than what is currently available. Big data center facilities may accommodate more customers than small data center facilities because they have more storage and computing resources available to them. For service providers, maintaining such huge data centers is also easier than managing numerous tiny data centers.
Recent years have witnessed significant investments in the Malaysian data center business. A major factor in this is the increasing use of technology by local businesses, especially SMEs. The study finds that the financial incentives provided by the Malaysian government have encouraged colocation and hyperscale operators to invest there. Also, the construction of data centers in free trade zones is now possible as a result of these activities.
The government of Malaysia initiated a number of steps to enhance the nation's digital infrastructure and economy in response to COVID-19. Through these activities, the nation has seen an increase in cloud use by businesses, government organizations, and the education sector, among other industry verticals. Market vendors should concentrate more on the growth prospects in the fast-growing categories while preserving their positions in the slower-growing segments in order to take advantage of the chances and recover from the effects of post-COVID-19.
Malaysia Data Center Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; AIMS DC, Basis Bay, Bridge Data Center, CSF Advisors, HDC, IPServerOne, NTT, Open DC, Starteq, TM One, Vantage DC.
Malaysia Data Center Market Segmentation:
By Type of Data Center: Based on the Type of Data Center, Malaysia Data Center Market is segmented as; Co-location Data Center (Retail Co-location, Wholesale Co-location), Hyperscale, Managed Data Center.
By End User: Based on the End User, Malaysia Data Center Market is segmented as; BFSI, E-Commerce, Education, Government, IT/ITes, Logistics, Manufacturing, Retail, Others.
By Region: This report also provides the data for key regional segments of Central, East, North, South.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.