Rashtriya Newsflash

The Malaysia data center market is undergoing a rapid scale-up as demand for AI-driven computing, cloud infrastructure, and regional colocation capacity accelerates across Southeast Asia. Valued at USD 6.15 billion in 2025, the market is projected to reach USD 11.40 billion by 2031, expanding at a CAGR of 10.85%, according to Arizton latest research.

Growth is being reinforced by Malaysia’s cost-efficient land and energy profile, strong network connectivity, and proximity to Singapore. While the Klang Valley remains an established hub, Johor has emerged as a strategic hyperscale location, supported by low-latency access to Singapore and a growing pipeline of large-scale developments. As of November 2025, Johor’s pipeline stands at ~4.0 GW of upcoming power capacity, with 700 MW under construction and 3.3 GW in planned or announced stages, highlighting strong investor readiness and long-term capacity visibility.

 

See detailed analysis here → Malaysia Data Center Report

 

Report Summary:

MARKET SIZE (INVESTMENT): USD 11.40 Billion (2031)

MARKET SIZE (AREA): 2,840 thousand sq. feet (2031)

MARKET SIZE (POWER CAPACITY): 679 MW (2031)

CAGR – INVESTMENT (2024-2030): 10.85%

COLOCATION MARKET SIZE (REVENUE): USD 3.73 Billion (2031)

HISTORIC YEAR: 2022-2024

BASE YEAR: 2025

FORECAST YEAR: 2026-2031

 

Hyperscale Cloud Deployments Gain Traction in Malaysia Amid Rising Digital Demand

Malaysia’s cloud ecosystem is expanding rapidly, supported by rising demand for AI-ready infrastructure, accelerating enterprise digital transformation, and government-led cloud-first policies. Increasing requirements for in-country cloud services, including low-latency access, data residency, and regulatory compliance, are driving hyperscale and global cloud service providers to scale local data center capacity and establish cloud regions within the country. This trend is reflected in growing capital commitments from major operators; in May 2025, Google expanded its data center investments in Malaysia by USD 236 million, partnering with Gamuda DC Infrastructure to develop a hyperscale facility in Port Dickson. Such investments underscore Malaysia’s strengthening position as a key hyperscale and cloud infrastructure market in Southeast Asia.

 

Capital Shifts to Malaysia as Data Center Investors Seek Scale Beyond Singapore

Malaysia is solidifying its position as a strategic data center hub in Southeast Asia, driven by its central location, robust digital infrastructure, and stable operating environment. Reliable power supply, supportive regulations, and targeted government incentives enhance its attractiveness for hyperscale and AI-focused developments. Coupled with cost-efficient land and energy, strong regional connectivity, including 24 operational submarine cables and six additional planned, plus accelerating renewable energy adoption, Malaysia is emerging as a long-term, scalable investment destination for global technology providers.

 

Malaysia Fast-Tracking AI Leadership: Global Tech Giants Bet on Its Next-Gen Data Hubs

Malaysia is accelerating its emergence as a leading AI hub in Southeast Asia, driven by proactive government initiatives, robust foreign investment, and strategic collaborations across industry and academia. AI-focused programs are fostering local talent, encouraging innovation, and attracting global technology leaders, including major investments from Microsoft, Oracle, and the YTL–NVIDIA green AI data center partnership. With advanced infrastructure such as Southeast Asia’s first NVIDIA H100 GPU-as-a-Service platform, the country is supporting growing AI adoption across industries including manufacturing, healthcare, and finance. These combined efforts position Malaysia as a forward-looking, competitive destination for AI development, signaling strong potential for future growth in digital transformation and AI-powered innovation.

 

Full signal breakdown available? here: https://www.arizton.com/market-reports/malaysia-data-center-market-size-analysis

 

Existing Vs. Upcoming Data Centers

Existing Facilities in the region (Area and Power Capacity)

• Cyberjaya
• Other Cities

List of Upcoming Facilities in the region (Area and Power Capacity)

• Cyberjaya
• Other Cities

 

The Malaysia Data Center Market Report Includes Size in Terms of

• IT Infrastructure: Servers, Storage Systems, and Network Infrastructure
• Electrical Infrastructure: UPS Systems, Generators, Transfer Switches & Switchgears, PDUs, and Other Electrical Infrastructure
• Mechanical Infrastructure: Cooling Systems, Rack Cabinets, and Other Mechanical Infrastructure
• Cooling Systems: CRAC & CRAH Units, Chiller Units, Cooling Towers, Condensers & Dry Coolers, and Other Cooling Units
• General Construction: Core & Shell Development, Installation & Commissioning Services, Engineering & Building Design, Fire Detection & Suppression Systems, Physical Security, and Data Center Infrastructure Management (DCIM)
• Tier Standard: Tier I & Tier II, Tier III, and Tier IV
• Region: Selangor and Johor

 

Vendor Landscape

IT Infrastructure Providers

• Cisco Systems
• Dell Technologies
• Fujitsu
• Hewlett Packard Enterprise
• Huawei Technologies
• IBM
• Inspur
• Lenovo
• NetApp
• NVIDIA

Data Center Construction Contractors & Sub-Contractors

• Advance Power Engineering
• AEON SERVICES
• Arcadis
• Arup
• Asima Architects
• AVO Technology
• B-Global Tech
• Binastra Corporation
• CCIE Engineering
• Critical Holdings
• CSF Advisers
• CTC-Global
• Cyclect Group
• DCD Technology
• DSCO Group
• Exyte (M+W Group)
• Gamuda
• GCM Technologies
• Greatians Consulting
• HSS Engineers
• IJM Corporation
• INHERIT TECHNOLOGY ENGINEERING
• ISG
• Jurutera JRK
• Kienta Engineering Construction
• LandArc Associates
• Leighton Asia
• Linesight
• LSK Engineering
• Meg Consult
• MES Group
• MN Holdings
• Nakano
• NTT Facilities
• OWH Consulting
• Mitrajaya Holdings
• PKT Quantity Surveyors
• PMX Malaysia
• Powerware Systems
• RDC Arkitek
• S5 Engineering
• Shaw Architect
• Sunway Construction Group
• Turner & Townsend
• Unique Central

Support Infrastructure Providers

• ABB
• Aggreko
• Caterpillar
• Cummins
• Eaton
• EKG M & E
• Fuji Electric
• HITEC Power Protection
• Legrand
• Mitsubishi Electric
• Narada Power Source
• Piller Power Systems
• Rehlko
• Rittal
• Rolls-Royce
• Schneider Electric
• Siemens
• Socomec
• STULZ
• Systemair
• Trane
• Vertiv

Data Center Investors

• AIMS Data Centre
• AirTrunk
• Alibaba Cloud
• AWS
• Bridge Data Centres
• DayOne
• Equinix
• K2 Strategic
• Keppel Data Centres
• NTT DATA
• Open DC
• Princeton Digital Group
• Telekom Malaysia
• Vantage Data Centers
• YTL Data Center

New Entrants

• BRIGHT RAY
• CURRENC Group
• DAMAC Digital
• Digital Halo
• Doma Infrastructure Group
• EdgeConneX
• Empyrion Digital
• Epoch Digital
• FutureData
• Global Telecommunications
• Google
• i-Berhad
• Infinaxis Data Centre Holdings
• Microsoft
• NEXTDC
• Nxera
• Racks Central
• ST Telemedia Global Data Centres
• STACK Infrastructure
• ZDATA Technologies.

 

Related Reports That May Align with Your Business Needs

Singapore Data Center Market – Investment Analysis & Growth Opportunities 2025-2030

https://www.arizton.com/market-reports/singapore-data-center-market-size-analysis

Thailand Data Center Colocation Market – Supply & Demand Analysis 2025-2030

https://www.arizton.com/market-reports/thailand-data-center-colocation-market

 

What Key Findings Will Our Research Analysis Reveal?

• How much MW of power capacity will be added across Malaysia in 2031?
• What factors are driving the Malaysia data center market?
• Which all geographies are included in Malaysia data center market report?
• How big is the Malaysia data center market?

 

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Founded in 2017, Arizton Advisory & Intelligence delivers data-driven market research and strategic consulting that empowers clients to make informed decisions and drive growth. Combining quantitative and qualitative insights, we provide in-depth analysis across industries including Agriculture, Consumer Goods, Technology, Automotive, Healthcare, Data Centers, and Logistics. Recognized by top-tier media, our expert team transforms complex market data into actionable strategies, helping clients anticipate trends, seize opportunities, and stay ahead of the competition.

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