
Study Period | 2019 - 2031 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2031 |
Market Size (2025) | USD 0.21 Billion |
Market Size (2031) | USD 1.12 Billion |
CAGR (2025 - 2031) | 32.67 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Malaysia Data Center Cooling Market Analysis
The Malaysia Data Center Cooling Market size is estimated at USD 0.21 billion in 2025, and is expected to reach USD 1.12 billion by 2031, at a CAGR of 32.67% during the forecast period (2025-2031).
- The upcoming IT load capacity of the Malaysia data center market is expected to reach around 1.5K MW by 2030. The country's construction of raised floor area is expected to increase by more than 7.8 million sq. ft by 2030.
- The country's total number of racks to be installed is expected to reach more than 380K units by 2030. Cyberjaya-Kuala Lumpur is expected to house the maximum number of racks by 2030.
- Close to 25 submarine cable systems are connecting Malaysia, and many are under construction. One such submarine cable that is estimated to start service in 2024 is SEA-H2X, which stretches over 5,000 km with landing points from Kuching, Malaysia.
- Driven by rising investments in data centers, ongoing digitalization efforts, and supportive government policies, Malaysia's data center cooling market is experiencing rapid growth. For instance, Johor is reaping the rewards of its closeness to Singapore, serving as a viable alternative to the city-state. With Johor's operational capacity being double that of Kuala Lumpur, operators in Johor enjoy attractive land and power prices, along with lower construction costs than those in Singapore
- The Malaysian government is actively courting data center investments. They're offering tax breaks, grants, and regulatory assistance to smooth the entry for foreign investors. One such initiative is the "Green Lane Pathway" by Tenaga Nasional Berhad (TNB), ensuring power access within a swift 12-month timeframe. Thanks to this unwavering government backing, Malaysia has firmly established itself as a pivotal player in the regional data center landscape
Malaysia Data Center Cooling Market Trends
IT and Telecom Held Significant Share in 2023
- In early 2024, Malaysia had around 33.59 million internet users, with an internet penetration rate of 97.4%. In January 2024, the nation reported 28.68 million social media users, accounting for 83.1% of its populace. Additionally, as of early 2024, there were 44.55 million active cellular mobile connections, exceeding the total population by 129.2%. These statistics highlight Malaysia's strong digital connectivity and active social media participation.
- In August 2023, after securing an access agreement with Digital Nasional Berhad (DNB), Maxis, a leading mobile operator in Malaysia, rolled out its 5G services nationwide
- In Malaysia, post-pandemic economic recovery, robust sales of 5G smartphones, and targeted marketing strategies created significant momentum. Malaysian consumers are increasingly eager to transition to 5G. Furthermore, existing 5G users in the country are actively seeking to enhance their plans with features such as video and music streaming, online gaming, live sports, and cloud storage. Notably, Malaysia boasts multiple internet exchange points, including key players like DE-CIX Kuala Lumpur and MYNAP.
- As of January 2024, Malaysia boasted over 33 million internet users, with an internet penetration rate exceeding 97% of its total population. This penetration rate has experienced a consistent year-on-year growth of approximately 1.1%. The surge in internet users and their data consumption has led to a significant uptick in data traffic, amplifying the need for storage and processing. Consequently, this trend has spurred a heightened demand for data centers across the nation. With the anticipated growth in data centers, there's an inevitable rise in the demand for cooling infrastructure and technology. This is crucial, as the servers and equipment within data centers generate substantial heat, necessitating effective cooling for optimal daily operations.

Liquid-based Cooling is one of the Fastest-Growing Segment During Forecast Period
- Recently, immersion cooling technologies have gained traction, with nearly 40% of data centers adopting them in various forms. These systems utilize coolants that flow through a network of pipes, efficiently drawing heat away from IT equipment. This method proves particularly advantageous for cooling high-density servers.
- Many data centers are shifting towards sustainability to reduce their carbon emissions. Moreover, companies are installing new cooling systems to accommodate the increasing data center construction in the country. For instance, in June 2024, Nxera teamed up with Telekom Malaysia (TM) to establish a data center in Johor, located in southern Malaysia. The facility, equipped with liquid cooling technology, and is designed to support extensive computing, AI functions, catering specifically to cloud hyperscalers and GPU-as-a-Service providers.
- AirTrunk Operating Pty Ltd is at the forefront of revolutionizing AI-ready data centers in the country. immersion cooling is proving to be a transformative solution, boosting efficiency and sustainability while catering to the rapid expansion of AI and high-performance computing. For instance, in July 2024 AirTrunk officially commenced operations at its JHB1 data center campus in Johor. The initial phases of the JHB1 campus will provide more than 50 megawatts (MW) of capacity for its large technology customers. The facility features the company’s first deployment of direct-to-chip liquid cooling technology and high-density racks.
- AI integration is propelling market growth, especially in Malaysia. Guided by the "Malaysia's National AI Roadmap 2021-2025," Malaysia is embracing advanced AI technologies. At the same time, Malaysia is emerging as a prime data center hub, drawing significant investments from tech behemoths like Google, Microsoft, and Nvidia. With the surging demand for AI services, there's a pressing need for innovative cooling technology to handle efficient functioning of AI-based data centers.

Malaysia Data Center Cooling Industry Overview
The Malaysian data center cooling market has witnessed significant consolidation among key players, resulting in a heightened competitive landscape in recent years. Among the prominent players in this market are Rittal Gmbh & Co. KG, Schneider Electric SE, and Vertiv Group Corp. These industry leaders, boasting substantial market shares, are dedicated to expanding their customer base across the region. They employ strategic collaborative initiatives to enhance their market share and profitability. Moreover, companies such as STULZ Gmbh, Schneider Electric SE, and Vertiv Group Corp. offer liquid and air-based cooling products.
Malaysia Data Center Cooling Market Leaders
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Schneider Electric SE
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Rittal Gmbh & Co. KG
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Vertiv Group Corp.
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Johnson Controls Inc.
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Alfa Laval AB
- *Disclaimer: Major Players sorted in no particular order

Malaysia Data Center Cooling Market News
- July 2024: Munters Group acquired Geoclima Group, a move that strategically complemented Munters' business area data center technology (DCT). DCT is renowned for its cutting-edge climate solutions, including technologies like Oasis evaporative cooling and SyCool pumped refrigerant systems. By incorporating Geoclima's high-efficiency chillers into its offerings, DCT has bridged a crucial gap and enhanced its strategic positioning. This acquisition is poised to propel Geoclima into a more prominent role in the expansive data center market, promising growth opportunities that transcend its current scope.
- June 2024: Petronas Lubricants International partnered with Iceotope to launch a cutting-edge data center cooling fluid.
Malaysia Data Center Cooling Industry Segmentation
Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. Data center cooling is critical as data center facilities house many computer servers and network equipment that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.
The Malaysian data center cooling market is segmented into technology (air-based cooling [chillers and economizers, CRAH, cooling towers, and other air-based cooling technologies] and liquid-based cooling (immersion cooling, direct-to-chip cooling, and rear-door heat exchanger]), type of data center (hyperscaler, enterprise, and colocation), and end-user industry (IT and telecom, retail and consumer goods, healthcare, media and entertainment, federal and institutional agencies, and other end-user industries).
The market sizes and forecasts are provided in values of USD for all the above segments.
By Cooling Technology | Air-based Cooling | Chiller and Economizer | |
CRAH | |||
Cooling Tower (covers direct, indirect, and two-stage cooling) | |||
Other Air-based Cooling Technologies | |||
Liquid-based Cooling | Immersion Cooling | ||
Direct-to-Chip Cooling | |||
Rear-Door Heat Exchanger | |||
By Type | Hyperscalers (owned & Leased) | ||
Enterprise (On-premise) | |||
Colocation | |||
By End-user Industry | IT and Telecom | ||
Retail and Consumer Goods | |||
Healthcare | |||
Media and Entertainment | |||
Federal and Institutional agencies | |||
Other End-user Industries |
Malaysia Data Center Cooling Market Research FAQs
How big is the Malaysia Data Center Cooling Market?
The Malaysia Data Center Cooling Market size is expected to reach USD 0.21 billion in 2025 and grow at a CAGR of 32.67% to reach USD 1.12 billion by 2031.
What is the current Malaysia Data Center Cooling Market size?
In 2025, the Malaysia Data Center Cooling Market size is expected to reach USD 0.21 billion.
Who are the key players in Malaysia Data Center Cooling Market?
Schneider Electric SE, Rittal Gmbh & Co. KG, Vertiv Group Corp., Johnson Controls Inc. and Alfa Laval AB are the major companies operating in the Malaysia Data Center Cooling Market.
What years does this Malaysia Data Center Cooling Market cover, and what was the market size in 2024?
In 2024, the Malaysia Data Center Cooling Market size was estimated at USD 0.14 billion. The report covers the Malaysia Data Center Cooling Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Malaysia Data Center Cooling Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
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Malaysia Data Center Cooling Industry Report
Statistics for the 2025 Malaysia Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Malaysia Data Center Cooling analysis includes a market forecast outlook for 2025 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.