{"version":1,"type":"story","url":"https://digestai.news/story/malaysias-data-center-colocation-market-grows-18-6-annually-through-20","json":"https://digestai.news/story/malaysias-data-center-colocation-market-grows-18-6-annually-through-20.json","markdown":"https://digestai.news/story/malaysias-data-center-colocation-market-grows-18-6-annually-through-20.md","slug":"malaysias-data-center-colocation-market-grows-18-6-annually-through-20","headline":"Malaysia’s Data center colocation market grows 18.6% annually through 2031","summary":"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 5, 2026.\n\nCyberjaya 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.","keyPoints":["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"],"whyItMatters":"The rapid growth in Malaysia’s data center market reflects AI’s rising compute demands, with hyperscale players and government incentives shaping infrastructure investments. Liquid cooling and high-density racks are becoming critical for AI workloads, influencing global data center trends.","category":{"slug":"hardware","name":"Hardware & Compute","url":"https://digestai.news/category/hardware"},"entities":{"companies":["YTL Corporation","NVIDIA","SK Innovation","Bridge Data Centres","ResearchAndMarkets.com"],"models":[],"people":[]},"firstPublishedAt":"2026-10-05T01:33:00Z","updatedAt":"2026-10-05T01:33:00Z","sourceCount":1,"hasPrimarySource":false,"sources":[{"outlet":"finance.yahoo.com","title":"Malaysia Data Center Colocation Market - Supply and Demand Analysis and Forecast 2026-2031 | AI and Hyperscale Investment Fuel 18.6% CAGR and Johor Expansion","url":"https://finance.yahoo.com/technology/ai/articles/malaysia-data-center-colocation-market-083400790.html","publishedAt":"2026-10-05T01:33:00Z","type":"press","primary":false,"lead":true}],"sourceNotes":null,"discussions":[],"thread":null,"cite":{"text":"Digest AI, \"Malaysia’s Data center colocation market grows 18.6% annually through 2031\", 5 October 2026, https://digestai.news/story/malaysias-data-center-colocation-market-grows-18-6-annually-through-20","publisher":"Digest AI","title":"Malaysia’s Data center colocation market grows 18.6% annually through 2031","datePublished":"2026-10-05T01:33:00Z","url":"https://digestai.news/story/malaysias-data-center-colocation-market-grows-18-6-annually-through-20"},"generatedBy":"Written by Digest AI's editorial model from the linked sources; the sources are the record.","license":"Headlines, digests and key points are written by Digest AI and may be quoted with a link to the story page. Linked articles belong to their publishers. Terms: https://digestai.news/terms#reuse"}