Cyberjaya Emerges as the Country’s Leading Hub for Hyperscale and Cloud Expansion

The Malaysia Data Center Market is set to grow from USD 6.14 billion in 2025 to USD 11.40 billion by 2031, at a CAGR of 10.86%. Cyberjaya leads with 22+ existing and 9 upcoming centers, fueled by the government’s Green Data Center Guidelines promoting energy-efficient solutions. Construction costs, ranging from $8 to $10 million per MW, are competitive yet expected to rise yearly. New power tariffs may increase data center operations’ energy costs by 10%-14%. Notable players like AWS, Google, and Microsoft expand their Malaysian presence, enhancing technology and services in this dynamic market, which spans IT, power, and construction sectors.

Malaysian Data Center Market

Dublin, Jan. 14, 2026 (GLOBE NEWSWIRE) — The “Malaysia Data Center Market – Investment Analysis & Growth Opportunities 2026-2031” report has been added to ResearchAndMarkets.com’s offering.

The Malaysia Data Center Market was valued at USD 6.14 Billion in 2025, and is projected to reach USD 11.40 Billion by 2031, rising at a CAGR of 10.86%.

Malaysia has about 51 operational colocation data centers. Most colocation data centers are being developed according to Tier III standards. Cyberjaya is the top data center destination in the country. It continues to be Malaysia’s leading hub for data center expansion, marked by a concentrated growth in advanced facilities, hyperscale data centers, and dedicated cloud regions. There are more than 22 existing and 9 upcoming data centers in Cyberjaya.

As of 2025, the average construction cost for developing a data center in Malaysia ranges from $8 million to $10 million per megawatt. This cost is lower compared with the cost structures in Singapore. However, these costs are expected to increase by 5%-7% year-over-year due to factors such as inflation, rising interest rates, as well as changes in government regulations and policies.

The Malaysian government promotes Green Data Center Guidelines under MDEC, encouraging operators to implement energy-efficient infrastructure and sustainable cooling solutions. Data centers are required to undergo Environmental Impact Assessments (EIA) for large-scale developments to ensure responsible land use and power consumption.

In July 2025, Malaysia implemented power tariffs for data centers. This tariff increase, which was first announced in December 2024 and finalized recently, could raise energy costs by 10% to 14%. Data centers with a capacity exceeding 100 MW will be classified under the ultra-high voltage category, subjecting them to the highest tariffs. Consequently, these facilities can incur an additional expenditure of $15 million to $20 million per year. Following the introduction of these power tariffs, data center operators in Malaysia are reassessing their energy options.

MALAYSIA DATA CENTER MARKET VENDOR LANDSCAPE

• Companies such as Bright Ray, DAMAC Digital, Digital Halo, NEXTDC, ST Telemedia Global Data Centres and others are emerging in the country, reflecting a growing demand for data center services and innovative colocation solutions. This dynamic environment is fostering competition and promoting advancements in technology and customer offerings.

• The cloud market in Malaysia is expected to continue experiencing significant growth in the future. Major global cloud providers such as Amazon Web Services (AWS), Microsoft, Google and others continue to expand their presence.

• In November 2025, Microsoft announced its plan to establish a second cloud region, Southeast Asia 3, in Johor, Malaysia. This new region is expected to include three availability zones and is projected to be operational within the next two to three years.

• In December 2024, NTT DATA announced the plans for the development of a new data center campus in Johor. The campus is estimated to feature six data center buildings, with the first one slated to become operational by 2027. In August 2024, the company acquired land from Tropicana Corporation Berhad for around $88.5 million; the data center will be developed on this land.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Malaysia colocation market revenue.

• An assessment of the data center investment in Malaysia by colocation, hyperscale, and enterprise operators.

• Data center investments in the area (square feet) and power capacity (MW) across cities in the country.

• A detailed study of the existing Malaysia data center market landscape, an in-depth industry analysis, and insightful predictions about the Malaysian data center market size during the forecast period.

• Snapshot of existing and upcoming third-party data center facilities in Malaysia

  • Facilities Covered (Existing): 51

  • Facilities Identified (Upcoming): 51

  • Coverage: 10+ Cities

  • Existing vs. Upcoming (Data Center Area)

  • Existing vs. Upcoming (IT Load Capacity)

• Data center colocation market in Malaysia

  • Colocation Market Revenue & Forecast (2022-2031)

  • Retail & Wholesale Colocation Revenue (2022-2031)

  • Retail & Wholesale Colocation Pricing

• Malaysia data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.

• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.

• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.

• A transparent research methodology and the analysis of the demand and supply aspect of the market.

KEY QUESTIONS ANSWERED

• How much MW of power capacity will be added across Malaysia in 2031?

• What factors are driving the Malaysia data center market?

• Which all geographies are included in Malaysia data center market report?

• How big is the Malaysia data center market?

Key Attributes:

EXISTING VS. UPCOMING DATA CENTERS

VENDOR LANDSCAPE

IT Infrastructure Providers

Data Center Construction Contractors & Sub-Contractors

• Advance Power Engineering

• AEON SERVICES

• Arcadis

• Arup

• Asima Architects

• AVO Technology

• B-Global Tech

• Binastra Corporation

• CCIE Engineering

• Critical Holdings

• CSF Advisers

• CTC-Global

• Cyclect Group

• DCD Technology

• DSCO Group

• Exyte (M+W Group)

• Gamuda

• GCM Technologies

• Greatians Consulting

• HSS Engineers

• IJM Corporation

• INHERIT TECHNOLOGY ENGINEERING

• ISG

• Jurutera JRK

• Kienta Engineering Construction

• LandArc Associates

• Leighton Asia

• Linesight

• LSK Engineering

• Meg Consult

• MES Group

• MN Holdings

• Nakano

• NTT Facilities

• OWH Consulting

• Mitrajaya Holdings

• PKT Quantity Surveyors

• PMX Malaysia

• Powerware Systems

• RDC Arkitek

• S5 Engineering

• Shaw Architect

• Sunway Construction Group

• Turner & Townsend

• Unique Central

Support Infrastructure Providers

• ABB

• Aggreko

• Caterpillar

• Cummins

• Eaton

• EKG M & E

• Fuji Electric

• HITEC Power Protection

• Legrand

• Mitsubishi Electric

• Narada Power Source

• Piller Power Systems

• Rehlko

• Rittal

• Rolls-Royce

• Schneider Electric

• Siemens

• Socomec

• STULZ

• Systemair

• Trane

• Vertiv

DATA CENTER INVESTORS

• AIMS Data Centre

• AirTrunk

• Alibaba Cloud

• AWS

• Bridge Data Centres

• DayOne

• Equinix

• K2 Strategic

• Keppel Data Centres

• NTT DATA

• Open DC

• Princeton Digital Group

• Telekom Malaysia

• Vantage Data Centers

• YTL Data Center

NEW ENTRANTS

• BRIGHT RAY

• CURRENC Group

• DAMAC Digital

• Digital Halo

• Doma Infrastructure Group

• EdgeConneX

• Empyrion Digital

• Epoch Digital

• FutureData

• Global Telecommunications

• Google

• i-Berhad

• Infinaxis Data Centre Holdings

• Microsoft

• NEXTDC

• Nxera

• Racks Central

• ST Telemedia Global Data Centres

• STACK Infrastructure

• ZDATA Technologies.

SEGMENTS

IT Infrastructure

• Servers

• Storage Systems

• Network Infrastructure

Electrical Infrastructure

Mechanical Infrastructure

Cooling Systems

General Construction

• Core & Shell Development

• Installation & Commissioning Services

• Engineering & Building Design

• Fire Detection & Suppression Systems

• Physical Security

• Data Center Infrastructure Management (DCIM)

Tier Standard

• Tier I & Tier II

• Tier III

• Tier IV

Region

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