Malaysia’s Data center colocation market grows 18.6% annually through 2031
Malaysia’s data center colocation market is projected to expand at a compound annual growth rate of 18.6% from 2025 to 2031, driven by AI workloads, hyperscale investments, and government incentives. By 2031, the utilized data center area is expected to reach 24.89 million square feet, with rack capacity totaling 609,300 units, according to a report by ResearchAndMarkets.com published on October…
Key points
- Malaysia’s data center colocation market grows at **18.6% CAGR** through 2031, reaching **24.89M sq. ft** of utilized space by 2031
- AI and GPU workloads drive demand for **liquid cooling, high-density racks, and renewable energy** in new facilities
- **YTL Corporation** invested **$2.36B** in AI infrastructure with NVIDIA in July 2025, while Johor expands as a key hub
Cyberjaya remains the country’s primary data center hub due to its infrastructure and government support, while Johor is gaining traction as a new major location. AI and GPU-intensive workloads are reshaping demand, requiring higher-density racks, liquid cooling, and renewable energy. In July 2025, YTL Corporation announced a $2.36 billion investment in AI infrastructure with NVIDIA, and in June 2025, SK Innovation partnered with Bridge Data Centres to deploy liquid cooling solutions. These trends reflect Malaysia’s push to support AI and hyperscale computing needs.
Malaysia Data Center Colocation Market - Supply and Demand Analysis and Forecast 2026-2031 | AI and Hyperscale Investment Fuel 18.6% CAGR and Johor Expansion
finance.yahoo.com · 5 October 2026
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