Malaysia Data Center Colocation Market Investment to Reach USD 3.52 Billion by 2030
Get Insights on 83 Existing Colocation Data Center Facilities across Malaysia
According to Arizton's latest research report, the Malaysia data center colocation market to grow at a CAGR of 29.98% during the forecast period.
Report Scope:
Market Size - Colocation Revenue: USD 3.52 Billion (2030)
CAGR - Colocation Revenue: 29.98% (2024-2030)
Market Size - Utilized White Floor Area:14.56 Million Sq. Feet (2030)
Market Size - Utilized Racks: 281.70 Thousand Units (2030)
Market Size - Utilized It Power Capacity: 3,340 Mw (2030)
Historic Year: 2021-2023
Base Year: 2024
Forecast Year: 2025-2030
Malaysia: A Growing Colocation Hub Backed by Digital Demand
Malaysia is emerging as a key colocation destination in Southeast Asia, driven by spillover demand from Singapore and the rapid scale-up of operators expanding regional capacity. Cyberjaya remains the core hub, supported by strong investments from local and international players like AirTrunk, Bridge Data Centres, NTT, YTL Data Centers, and others.
Continued adoption of AI, 5G rollout, and data localization requirements are boosting demand for reliable capacity. At the same time, Malaysia's push for renewable energy and national AI initiatives signals strong government backing for digital growth.
While the introduction of new power tariffs and surcharges poses cost considerations for operators, Malaysia's strong fundamentals, from network connectivity improvements to a favorable investment climate, continue to reinforce its position as a high-potential market for colocation providers and investors looking to tap into Southeast Asia's expanding digital economy.
Surging AI Workloads Fuel New Demand for High-Density, Green Data Centers in Malaysia
The rapid adoption of AI across sectors such as manufacturing and healthcare is accelerating demand for AI-ready data center capacity in Malaysia. Over the next two to three years, this growth is expected to drive investments in advanced cooling systems, higher rack power density, and upgraded UPS and backup infrastructure to support high-performance computing workloads.
Leading operators are already responding to this trend. In May 2024, ST Telemedia Global Data Centres (STT GDC) announced the rollout of AI-ready facilities across six Southeast Asian markets, including Malaysia, with a combined capacity exceeding 500 MW (operational and under development). The new AI-optimized sites in Malaysia, Indonesia, and the Philippines are set to go live within the next two to three years, strengthening Malaysia's position as a key hub for scalable, high-density digital infrastructure in the region.
Capacity Developments: Malaysia's Colocation Power Growth and New Deals
Core & shell capacity: As of May 2025, Malaysia's colocation operators have added over 751 MW of total core & shell power capacity, with an installed capacity of ~637 MW and a strong utilization rate of ~85% (approx. 540 MW).
Major energy deal: In December 2024, Bridge Data Centres signed an Electricity Supply Agreement with Tenaga Nasional Berhad (TNB) to secure 400 MW for its MY07 data center in Johor.
Strategic joint venture: In October 2024, Mah Sing partnered with Bridge Data Centres to develop a new 200 MW data center outside Kuala Lumpur, expanding large-scale capacity in a key metro market.
New data center park: Also in October 2024, FutureData secured Global Telecommunications as its first tenant for its Sarawak data center park, with an initial commitment of 17 MW out of the site's planned 500 MW. Construction begins in 2025.
Liquid Cooling Innovations Strengthen Colocation Efficiency for Next-Gen Workloads
As demand for high-density workloads and AI applications grows, operators are adopting advanced liquid cooling solutions to achieve higher efficiency and reliability than conventional air cooling. Newer liquid-based methods, including immersion and direct-to-chip cooling, enable precise, scalable thermal management with lower energy consumption and improved operational performance.
Providers like Bridge Data Centres now offer versatile solutions, such as the X Cooling System Series, which combines air-cooled, water-cooled, cold plate, and immersion liquid cooling options to meet diverse capacity requirements, including emerging AI-driven use cases. These advancements position liquid cooling as a practical path for colocation providers to enhance sustainability, reduce operating costs, and deliver next-generation infrastructure for high-performance computing.
Vendor Landscape
Existing Colocation Operators
AIMS Data Centre
AirTrunk
Bridge Data Centres
BRIGHTRAY
DayOne (GDS Services)
EdgeConneX
Equinix
NTT DATA
Princeton Digital Group
Vantage Data Centers
Yondr
YTL Data Centers
TM One
CSF Advisers
Edge Centres
HDC Data Centre
IRIX
Keppel Data Centres
K2 Strategic
New Operators
AIZO Group
AREA Group
CURRENC Group
Doma Infrastructure Group
DAMAC Digital
Epoch Digital
FutureData
Global Telecommunications
I-Berhad
Infinaxis Data Centre Holdings
Pi Data Centre
Maxland
NEXTDC
Open DC
ST Telemedia Global Data Centres
STACK Infrastructure
UEM Sunrise + ESR
VCI Global
ZDATA Technologies
What's Included in the Report?
Market sizing: white floor area, IT power capacity (Core & Shell vs. Installed vs. Utilized), occupancy rates.
Existing vs. upcoming colocation sites across 5+ states — 45 live, 38 in the pipeline.
Demand forecast by industry, plus retail vs. wholesale colocation revenue and pricing trends through 2030.
Updates on submarine cables, cloud on-ramps, and sustainability progress.
Competitive landscape: operator share by capacity and revenue.
Vendor profiles with site count, capacity, and location details.
Malaysia Data Center Market - Investment Analysis & Growth Opportunities 2025-2030
https://www.arizton.com/market-reports/malaysia-data-center-market-size-analysis
Singapore Data Center Market - Investment Analysis & Growth Opportunities 2025-2030
Key Questions Answered in the Report:
What is the count of existing and upcoming colocation data center facilities in Malaysia?
How much MW of IT power capacity is likely to be utilized in Malaysia by 2030?
Who are the new entrants in the Malaysia data center industry?
What factors are driving the Malaysia data center colocation market?
Why Arizton?
100% Customer Satisfaction
24x7 availability – we are always there when you need us
200+ Fortune 500 Companies trust Arizton's report
80% of our reports are exclusive and first in the industry
100% more data and analysis
1500+ reports published till date
Post-Purchase Benefit
1hr of free analyst discussion
10% off on customization
About Us:
Arizton Advisory and Intelligence is an innovative and quality-driven firm that offers cutting-edge research solutions to clients worldwide. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
We offer comprehensive market research reports on consumer goods & retail technology, automotive and mobility, smart tech, healthcare, life sciences, industrial machinery, chemicals, materials, I.T. and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.
Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.
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