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Malaysia Data Center Market (2025–2030) – Size, Capacity, Trends & Outlook

 Malaysia Data Center Market Overview

The Malaysia Data Center Market has emerged as one of the fastest-growing digital infrastructure hubs in Southeast Asia. Strategic location, competitive costs, and strong government support have positioned the country as a preferred destination for both hyperscale and enterprise data center investments.

In 2024, the market was valued at USD 4.04 billion and is projected to reach USD 13.57 billion by 2030, growing at a CAGR of 22.38%. This growth is driven by increasing cloud adoption, expansion of AI workloads, and Malaysia’s role as a cost-effective alternative to Singapore.

Current Capacity & Pipeline Development


The Malaysian data center landscape is expanding rapidly:

  • Operational Capacity (2025): Approximately 1,260 MW across 46 active facilities.
  • Pipeline Capacity: Expected to approach 5 GW by the end of 2025.
  • Key Hubs:
    • Johor – Emerging as the hyperscale capital due to proximity to Singapore, large land parcels, and lower operating costs.
    • Selangor – Strong enterprise demand and robust connectivity ecosystem.
    • Cyberjaya – Established tech hub with mature infrastructure.

Major Players & Upcoming Projects

Malaysia hosts a mix of global hyperscale’s and regional operators:

Operator

Location

Capacity (MW)

Status

Go-Live Year

Microsoft

Johor

120

Under Construction

2026

Keppel DC REIT

Johor

100

Planning

2027

Bridge Data Centres

Selangor

80

Expansion

2025

YTL

Cyberjaya

60

Under Construction

2025

Equinix

Johor

50

Planning

2026

These projects reflect Malaysia’s strong investment momentum and focus on building large-scale, hyperscale-ready facilities.

Malaysia Data Center Market Drivers

  1. Hyperscaler Expansion – Cloud giants are scaling up to meet AI and storage needs.
  2. Cost Competitiveness – Lower land and energy costs compared to Singapore.
  3. Government Support – Policies promoting digital economy growth and renewable energy adoption.
  4. Regional Connectivity – Access to multiple subsea cable systems and low-latency cross-border links.

Malaysia Data Centre Market Challenges

  • Electricity Tariffs: Rising energy costs could impact pricing and margins.
  • Sustainability Pressure: Operators are under increasing pressure to use renewable energy and reduce carbon emissions.
  • Infrastructure Constraints: Power and water supply limitations in high-demand zones.

Colocation Pricing Trends

Malaysia’s colocation pricing remains competitive, with rack and kW rates significantly lower than regional hubs. However, strong demand and rising operational costs could lead to moderate price adjustments over the next 2–3 years.

Regulatory & Policy Environment

The country is moving towards stronger data sovereignty and cloud security frameworks, encouraging local hosting of sensitive workloads. Green energy incentives, such as Renewable Energy Certificates (RECs) and the Green Electricity Tariff program, are influencing investment strategies.

Malaysia Data Center Market Outlook (2025–2030)

By 2030, Malaysia is expected to be the second-largest data center hub in Southeast Asia by total capacity, after Singapore. Johor will continue to dominate hyperscale growth, while Selangor and Cyberjaya remain vital for enterprise hosting and interconnection.

Key trends shaping the future include:

  • Integration of AI-ready infrastructure.
  • Adoption of renewable power sourcing for sustainability compliance.
  • Expansion of regional edge and sovereign cloud solutions.

FAQ – Malaysia Data Center Market

Q1: What is the market size of Malaysia’s data center industry in 2025?
The market is valued at around USD 4.5 billion in 2025 and is projected to grow rapidly through 2030.

Q2: Which city in Malaysia is leading in hyperscale development?
Johor is leading due to its cost advantages, available land, and strategic proximity to Singapore.

Q3: What is the total projected capacity by 2030?
Malaysia’s total data center capacity could exceed 7 GW by 2030.

Q4: What factors are driving growth?
Hyperscaler investment, favorable policies, regional connectivity, and rising digital demand are the primary drivers.

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Location: Malaysia

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