Tap into the Data Centre boom in Malaysia

Malaysia is on its way to becoming a data centre (DC) hub in the region. Between 2021 and June 2024, a total of 20 billion USD poured in for DC developments. International companies such as US-based Google, Microsoft, Equinix, as well as China-based Yondr Group, Bridge Data Centres and Singapore-based Keppel Data Centres and Singapore Telecommunications Ltd (Singtel) are among the big names in Malaysia's DC market.

According to DC research company Baxtel, Johor has a total of 29 DC facilities spanning over 2.32 million sq ft with 461 MW of capacity. There are another eight DCs under construction as of December 2024. The state is currently ranked as the largest DC market in the country and eighth in Asia-Pacific. Not to be left behind, Kuala Lumpur comes in as the second largest DC market in the country and 13th in the region. In total, there are about 47 DCs in operation in the city and another under construction.

With the increasing focus on sustainability, there's a growing need for renewable energy solutions to power data centres. It's estimated that 35-40 gigawatts (GW) of renewable energy capacity, primarily solar, will be necessary to support an anticipated 7.2GW of data centre load.

The growth of Malaysia's digital economy and the increasing adoption of cloud services by local businesses present significant opportunities for data centre providers to expand their presence in the market.

Malaysia's data centre industry is poised for robust growth, driven by increasing digital transformation, strategic geographic location, and government support for infrastructure and renewable energy integration. The data centre market is projected to grow at a compound annual growth rate (CAGR) of 13.92% from 2023 to 2029, expanding from 1.81 billion USD to an estimated 3.97 billion USD by 2029.

Sweden, with its expertise in sustainable data centre operations, energy efficiency and advanced cooling technologies, has strong potential to collaborate with Malaysian stakeholders on innovative solutions for energy-efficient and environmentally friendly data centres.

Potential collaborations on data centre innovation and solutions with Malaysian stakeholders.

Opportunities arising from the increasing focus on sustainability for data centres in Malaysia.

For more information contact Steve Chai at  steve.chai@business-sweden.se.