Malaysia's data center market is projected to nearly double from USD 6.14 billion in 2025 to USD 11.40 billion by 2031,
Dublin, Sept. 15, 2026 (GLOBE NEWSWIRE) -- "Malaysia Data Center Market - Investment Analysis & Growth Opportunities 2026-2031" has been added to ResearchAndMarkets.com's offering.
Malaysia Data Center Market to Reach USD 11.40 Billion by 2031, Driven by Cloud and Hyperscale Investment
The Malaysia data center market was valued at USD 6.14 billion in 2025 and is projected to reach USD 11.40 billion by 2031, expanding at a compound annual growth rate (CAGR) of 10.86%. Growth is being supported by hyperscale development, cloud adoption, colocation demand, digital transformation, and continued investment from global and regional data center operators.
Malaysia Data Center Market Highlights
Malaysia has approximately 51 operational colocation data centers, with most facilities developed to Tier III standards. Another 51 upcoming facilities have been identified across more than 10 cities.
Cyberjaya remains Malaysia's leading data center hub, with more than 22 existing and nine upcoming facilities. The city continues to attract advanced infrastructure, hyperscale campuses, and dedicated cloud regions.
Data center construction costs in Malaysia averaged approximately USD 8 million to USD 10 million per megawatt in 2025, remaining competitive compared with Singapore. Costs are expected to increase by 5% to 7% annually due to inflation, interest rates, regulatory changes, and supply-chain pressures.
Johor is strengthening its position as a major data center destination, supported by land availability, large-scale campus development, international connectivity, and investment from cloud and colocation providers.
Malaysia's Green Data Center Guidelines, promoted by the Malaysia Digital Economy Corporation, encourage energy-efficient infrastructure and sustainable cooling technologies. Large-scale developments are also subject to Environmental Impact Assessments.
Power tariffs introduced in July 2025 could increase energy costs for data centers by 10% to 14%. Facilities exceeding 100 MW are classified under the ultra-high-voltage category and may incur an additional USD 15 million to USD 20 million in annual expenditure, prompting operators to reassess energy procurement and efficiency strategies.
Cloud Investment and Vendor Landscape
The Malaysian cloud market is expected to maintain strong growth as Amazon Web Services, Microsoft, Google, Alibaba Cloud, and other international providers expand their infrastructure. In November 2025, Microsoft announced plans for a second Malaysian cloud region, Southeast Asia 3, in Johor. The proposed region is expected to include three availability zones and become operational within two to three years.
NTT DATA is also advancing plans for a new Johor data center campus comprising an estimated six buildings, with the first facility scheduled to begin operations in 2027. The company acquired the development site from Tropicana Corporation Berhad in August 2024 for approximately USD 88.5 million.
Established Malaysia data center investors include AIMS Data Centre, AirTrunk, AWS, Bridge Data Centres, DayOne, Equinix, Keppel Data Centres, NTT DATA, Princeton Digital Group, Telekom Malaysia, Vantage Data Centers, and YTL Data Center. New and expanding market participants include Bright Ray, DAMAC Digital, Digital Halo, EdgeConneX, Empyrion Digital, Google, Microsoft, NEXTDC, Nxera, ST Telemedia Global Data Centres, STACK Infrastructure, and ZDATA Technologies.
Research Coverage and Market Opportunities
The Malaysia data center market report evaluates investment, facility area, power capacity, and colocation revenue. It assesses development by colocation, hyperscale, and enterprise operators while comparing existing and upcoming data center capacity in Cyberjaya and other Malaysian cities.
Market size and forecasts for data center investment, white-floor area, power capacity, and colocation revenue.
Analysis of 51 existing and 51 upcoming third-party data center facilities across more than 10 cities.
Malaysia colocation market revenue forecasts from 2022 to 2031, including retail and wholesale colocation revenue and pricing.
Assessment of investments in IT infrastructure, electrical systems, mechanical systems, cooling, and general construction.
Analysis of market trends, growth drivers, investment opportunities, operating constraints, supply, and demand.
Business profiles and product portfolios of prominent investors, IT vendors, construction contractors, and support infrastructure providers.
Competitive Ecosystem
Major IT infrastructure providers serving the Malaysia data center market include Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, IBM, Inspur, Lenovo, NetApp, and NVIDIA.
The construction and engineering ecosystem includes Arcadis, Arup, Binastra Corporation, Critical Holdings, Exyte, Gamuda, HSS Engineers, IJM Corporation, ISG, Leighton Asia, Linesight, NTT Facilities, Sunway Construction Group, and Turner & Townsend. Key support infrastructure providers include ABB, Caterpillar, Cummins, Eaton, Fuji Electric, Legrand, Mitsubishi Electric, Piller Power Systems, Rolls-Royce, Schneider Electric, Siemens, STULZ, Trane, and Vertiv.
Malaysia Data Center Market Segmentation
IT infrastructure: Servers, storage systems, and network infrastructure.
Electrical infrastructure: UPS systems, generators, transfer switches, switchgear, power distribution units, and related systems.
Mechanical infrastructure: Cooling systems, rack cabinets, and associated equipment.
Cooling systems: CRAC and CRAH units, chillers, cooling towers, condensers, dry coolers, and other cooling technologies.
General construction: Core and shell development, installation and commissioning, engineering and building design, fire detection and suppression, physical security, and data center infrastructure management.
Tier standards: Tier I and Tier II, Tier III, and Tier IV facilities.