Malaysia Data Center Server Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 16.60 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Malaysia Data Center Server Market Analysis
The Malaysia data center server market reached a value of USD 1.4 billion in the previous year, and it is further projected to register a CAGR of 16.6% during the forecast period. The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
Under Construction IT Load Capacity: The upcoming IT load capacity of the Malaysia data center market is expected to reach 1300 MW by 2029.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by more than 7.5 million sq. ft by 2029.
Planned Racks: The country's total number of racks to be installed is expected to reach 380K units by 2029. Cyberjaya-Kuala Lumpur is expected to house the maximum number of racks by 2029.
Planned Submarine Cables: There are close to 25 submarine cable systems connecting Malaysia, and many are under construction. One such submarine cable that is estimated to start service in 2025 is SeaMeWe-6, which stretches over 19,200 Kilometers with landing points from Morib, Malaysia.
Malaysia Data Center Server Market Trends
IT & Telecommunication Segment to Hold Major Share in the Market
- Malaysia is going through an extended negotiation phase in the telecom sector. The two sides here are the government and the four main operators in the Malaysian telecom landscape: Maxis Berhad, Celcom Axiata Berhad, Digi Telecommunications, and U Mobile. These four operators have recently requested a review of the government's 5G access offer as they want at least a 51% stake in the government-owned 5G agency DNB.
- The development of digital infrastructures, such as data centers, is central to enabling 5G applications. With this, various investors are signing an agreement for the 5G launch. For instance, in November 2022, Malaysian telcos Celcom and DiGi approved the merger agreement. Once the two companies are fully merged, the new entity will be one of the largest carriers in Malaysia, with over 20 million subscribers.
- In context to data center investment for telecom, in the recent past, TM ONE, a business unit of state-controlled telecommunications company Telekom Malaysia, invested up to MYR 300 million (USD 70.94 million) for the development of a data center in Johor Bahru to cater to a growing demand from foreign entities. The facility is currently constructed as a core data center. With the growing scope of 5G in Malaysia, the data flow will increase exponentially, catering to the need for colocation.
- Malaysian Telcos Celcom and DiGi have also approved a merger agreement. Once the two companies are fully merged, the new entity will be the largest carrier in Malaysia, with over 20 million subscribers. The company also said that the implementation of 5G technology would have a positive impact of MYR 150 billion on the country's GDP and create 750,000 jobs.
- Moreover, rising smartphone users, coupled with discounted internet services and the increasing data traffic per smartphone, drive the demand for telecom services, creating more need for data storage space, leading to the rising demand for data center racks in the region.
Blade Servers to Grow at a Faster Pace in Coming Years
- Blade servers are designed to save space in data centers. Multiple blade servers can be housed in a single chassis, reducing the physical footprint required for your servers.
- Blade server chassis are typically designed with efficient cooling mechanisms, which can help maintain a consistent temperature in the data center and reduce cooling costs.
- Blade servers often come with integrated management tools that allow for centralized control and monitoring of all servers within the chassis.
- The growing adoption of technologies such as cloud computing, AI, IT services, Internet penetration, and social media users by businesses is propelling the use of servers in data centers.
- Blade servers are generally designed with energy efficiency in mind, helping to reduce power consumption and operational costs.
Malaysia Data Center Server Industry Overview
The Malaysia data center server market is relatively low in terms of competition. It has some major players in the market, such as Dell Inc., Cisco Systems Inc., Kingston Technology Company Inc., Hewlett Packard Enterprise, and Fujitsu Limited. These major players focus on expanding their customer base in the country. These companies leverage strategic collaborative initiatives to increase their market share and profitability.
In May 2023, Cisco introduced UCS X servers that cut data center energy use in half; the combination of the Cisco intersight infrastructure management platform and Unified Computing System (UCS) X-Series servers reduces data center energy consumption by up to 52% at a 4:1 server consolidation rate.
In July 2023, Dell launched Generative Artificial Intelligence Solutions that offers a modular, full-stack architecture for enterprises seeking a secure, high-performance, proven architecture for deploying large language models (LLM). A paradigm shift in IT planning has taken place due to the rapid demand for GenAI at work, which will continue to ripple through the industry. Thus, there has been a strong demand for graphics processing unit (GPU) accelerator servers that are driving the computational intensive training and inferencing of GenAI workflows.
Malaysia Data Center Server Market Leaders
Dell Inc.
Hewlett Packard Enterprise
Cisco Systems Inc.
Kingston Technology Company Inc.
Fujitsu Limited
*Disclaimer: Major Players sorted in no particular order
Malaysia Data Center Server Market News
August 2023: Hewlett Packard Enterprise has announced that, with cloud HPE ProLiNative RL300 Gen11 servers based on energy-efficient processors from Ampere Computing, PhoenixNAP, the world's leading IT service provider, expanded its bare metal cloud platform. With increased performance and energy efficiency, the expansion of services is intended to support AI inferencing, Cloud gaming, and any other workloads based on a "cloudnative" architecture. Also, it enables phoenixNAP to provide next-generation computing performance with energy consumption savings.
August 2023: Dell Inc. is transitioning its servers with Next-generation Dell PowerEdge Servers from OSA to ESA with PowerEdge R760 powered by 4th generation Intel Xeon Processors.
Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increase in construction of new data centers, development of internet infrastructure
4.2.2 Increasing adoption of cloud and IoT services
4.3 Market Restraints
4.3.1 Rising CapEx for data center construction
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
5.1 Form Factor
5.1.1 Blade Server
5.1.2 Rack Server
5.1.3 Tower Server
5.2 End-User
5.2.1 IT & Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media & Entertainment
5.2.5 Other End-User
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Dell Inc.
6.1.2 Hewlett Packard Enterprise
6.1.3 Cisco Systems Inc.
6.1.4 Kingston Technology Company Inc.
6.1.5 Huawei Technologies Co. Ltd.
6.1.6 Nvidia Corporation
6.1.7 Fujitsu Limited
6.1.8 NEC Corporation
6.1.9 Oracle Corporation
6.1.10 Atos SE
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Malaysia Data Center Server Industry Segmentation
A data center server is basically a high-capacity computer computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.
The Malaysia data center server market is segmented by form factor (blade server, rack server, and tower server), and by end-user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
Frequently Asked Questions
What is the current Malaysia Data Center Server Market size?
The Malaysia Data Center Server Market is projected to register a CAGR of 16.60% during the forecast period (2024-2030)
Who are the key players in Malaysia Data Center Server Market?
Dell Inc., Hewlett Packard Enterprise , Cisco Systems Inc., Kingston Technology Company Inc. and Fujitsu Limited are the major companies operating in the Malaysia Data Center Server Market.
What years does this Malaysia Data Center Server Market cover?
The report covers the Malaysia Data Center Server Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Malaysia Data Center Server Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Malaysia Data Center Server Industry Report
Statistics for the 2024 Malaysia Data Center Server market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Malaysia Data Center Server analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
