Data Centre & Cloud

Malaysia, the Digital Hub of ASEAN

Data Centre & Cloud

Malaysia, the Digital Hub of ASEAN

Data Centre & Cloud

Malaysia, the Digital Hub of ASEAN

Data Centre & Cloud Market Landscape

Malaysia has come out on top as the most attractive destination for data centre investment in the Knight Frank SEA-5 Data Centre Opportunity Index 2023.

4
Malaysia’s continued push for the cloud first strategy is integral in driving the development & adoption of digital infrastructure, which includes data centres, edge and cloud.
5
Johor emerged 7th while Kuala Lumpur achieved 8th place in the Established Markets Rankings under the Asia Pacific region in Cushman & Wakefield’s Global Data Center Market Comparison 2024. Both cities were also noted as top markets for tax incentives and water availability.
1
Global cloud service providers such as AWS, Microsoft, Alibaba, Tencent, IBM, Oracle, and Google continue to expand with new cloud regions in the Southeast Asia data centre market.
2
The increasing investments in hyper-scale data centres by global vendors is driving the growth of the regional market.
3
The rise in 5G network connectivity and submarine cables deployment, the increasing applications of IoT, the emergence & adoption of advanced IT workloads and sustainable initiatives by data centre investors are driving Data Centre & Cloud growth in the region.
4
Malaysia’s continued push for the cloud first strategy is integral in driving the development & adoption of digital infrastructure, which includes data centres, edge and cloud.
5
Johor emerged 7th while Kuala Lumpur achieved 8th place in the Established Markets Rankings under the Asia Pacific region in Cushman & Wakefield’s Global Data Center Market Comparison 2024. Both cities were also noted as top markets for tax incentives and water availability.
1
Global cloud service providers such as AWS, Microsoft, Alibaba, Tencent, IBM, Oracle, and Google continue to expand with new cloud regions in the Southeast Asia data centre market.
2
The increasing investments in hyper-scale data centres by global vendors is driving the growth of the regional market.
3
The rise in 5G network connectivity and submarine cables deployment, the increasing applications of IoT, the emergence & adoption of advanced IT workloads and sustainable initiatives by data centre investors are driving Data Centre & Cloud growth in the region.

5
Johor emerged 7th while Kuala Lumpur achieved 8th place in the Established Markets Rankings under the Asia Pacific region in Cushman & Wakefield’s Global Data Center Market Comparison 2024. Both cities were also noted as top markets for tax incentives and water availability.
1
Global cloud service providers such as AWS, Microsoft, Alibaba, Tencent, IBM, Oracle, and Google continue to expand with new cloud regions in the Southeast Asia data centre market.
2
The increasing investments in hyper-scale data centres by global vendors is driving the growth of the regional market.
3
The rise in 5G network connectivity and submarine cables deployment, the increasing applications of IoT, the emergence & adoption of advanced IT workloads and sustainable initiatives by data centre investors are driving Data Centre & Cloud growth in the region.
4
Malaysia’s continued push for the cloud first strategy is integral in driving the development & adoption of digital infrastructure, which includes data centres, edge and cloud.
5
Johor emerged 7th while Kuala Lumpur achieved 8th place in the Established Markets Rankings under the Asia Pacific region in Cushman & Wakefield’s Global Data Center Market Comparison 2024. Both cities were also noted as top markets for tax incentives and water availability.
1
Global cloud service providers such as AWS, Microsoft, Alibaba, Tencent, IBM, Oracle, and Google continue to expand with new cloud regions in the Southeast Asia data centre market.

Key Statistics for

Data Centre & Cloud in ASEAN

USD 17.73 bil

Southeast Asia’s forecasted data centre market investment by 2029 with a CAGR of 9.59%

USD 3.69 bil

Data centre market size in 2024 in Southeast Asia

>6.04%

YoY growth for 2023-2024 for the data centre market in Southeast Asia

Source: Arizton, Knight Frank, Technavio, Yahoo! Finance, Research and Markets

Key Statistics for

Data Centre & Cloud in Malaysia

9.41%

CAGR (2022-2028) of the Malaysia data centre market, due to the acceleration in digitalisation and the increase in the adoption of cloud technology, big data, IoT and smart cities

113MW of take-up

Malaysia was the top destination for data centre investment in 2022, followed by Thailand (25MW), Indonesia (22MW), Vietnam (2MW), and the Philippines (2MW)

34 Existing and 33 Upcoming

Colocation data centre facilities in Malaysia

Source: Arizton, Knight Frank, Technavio, Yahoo! Finance, Research and Markets

Malaysia’s Ingredients For Success

Criteria to support Data Centre & Cloud Ecosystem

Connectivity

Domestic & international: competitive, reliable, extensive capacity and diversity, dark fibre availability & fast restoration

Ease & Cost of Doing Business

Business environment, processes, compliance risks & costs & regulatory encumbrances

Progressive Data Governance

Principles of Privacy, Data Protection, Law Enforcement & Cross Border Data Flow

Energy

Largest cost component for DC OPEX: high reliability, competitive tariffs and Renewable Sources

Land & Utilities

Enables efficient building designs & long-term planning for expansion

Incentives

Financial and non-financial incentives in line with the future digital economy ecosystem

Demand Factors

Strong and growing market demand & Government adoption

Geographic Risk

Low incidence of natural disasters and other natural risk factors

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