1. Data Center Industry in Malaysia is dominated by Local Providers & is expected to grow @ 18 % CAGR (2021-2026F)
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The Malaysia Data Center Market revenue is expected to reach over $1 Bn by 2026F. More than 40 data center facilities are operating as of now with just four key players contributing towards 51% of the total white space in 2021. Rising number of cyberattacks, increased power consumption and cost index & unstable power supply are some of the major industry bottlenecks that need to be taken care of for the market to grow overtime. Moreover, major growth drivers like rapid digitization & high demand from SMEs & other industries will boost market growth in the coming years.
2. Retail Co-Location Services are the dominating segmentations of Malaysia Data Centre Market
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Malaysia Data Centre market is dominated by Co-location services with the same expected to increase from 55% in 2021 to 57% in 2026F owing to the increasing adoption of data centers by SMEs, E-commerce and IT industries in Malaysia. Retail Co-location data centers capture a massive share of 68% in the market while wholesale co-location centers have a share of 32% contributing a revenue of over $ 200 Million.
3. Unclear Regulatory Framework, Environmental Conditions, cyberattacks and Power Cost are few of the challenges and bottlenecks faced in Malaysia Data Center Market
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Malaysia Data centre market has some of the major bottlenecks that need to be looked out. A clear regulation as to the data centre is needed when it comes to the data centre market in Malaysia. Moreover, location assessment to determine proper placement of data centers is very important & has to be taken care of. The rising adoption of cloud services and IoT devices has increased the threat of cyberattacks. It is to be noted that Malaysia was the 11th most breached country in the world in 2022. A total of 665K+ Malaysians have been breached during 2022, recording a growth of 733% in the last quarter.
4. Shifts in creative media content towards Content Delivery Networks, IoT, growth of big data and the roll out of 5G is driving the demand for data consumptions
A number of technological innovations are being rolled out as a result of which, a steady growth is expected for the data centre market in Malaysia. The main drivers include Internet Of Things (IoT), shifts in creative media content towards Content Delivery Networks (CDN), such as YouTube, Netflix, Amazon Prime and gaming solutions, alongside the expected shift to 4K and 8K content. Artificial Intelligence enabling speech recognition, decision-making and language translation, 5G services, use of cloud-based services by businesses of all sizes & growth of Big data.