Market Research Reports - Ken Research Malaysia Data Centre, Hosting Services Market

Malaysia Data Centre Market, Hosting Services Market, Cloud and Data center companies in
Malaysia, Data Center Providers Malaysia – Ken Research
How Data Centre Market Is Positioned in Malaysia?
Data centres are usually run by big corporations and government agencies to store and process
their own data. However, in recent years corporations and government agencies have started
outsourcing DC services from companies having expertise in building, operations and
management of data centre. Smaller businesses are also seeking services from these data
centre companies for their data storage and operational requirements. Companies are investing
huge sums of money to safeguard their data and maintain continuous operations as success of
companies nowadays depend smooth running of their software operations.
With a vision of enlisting Malaysia into the list of developed countries in the world, the
Malaysian government has launched the Economic Transformation Program (ETP). Under this
program, development of data centre hubs across the country is one of the key
Entry Point Projects (EPPs) under the Business Services NKEAs (National Key Economic Areas) of
the Economic Transformation Program (ETP). Owing to the Government’s relentless efforts the
country is evolving as an attractive destination for global corporations to outsource their data
storage business. The revenue of the overall market has grown from USD ~ million in 2012 to
USD ~ million in 2017, with a CAGR of ~% during 2012-2017.
Although, there is stiff competition from markets like Singapore, Hong Kong and Japan, the
market in Malaysia is growing on the back of low overhead cost. Unlike countries like Singapore
and Japan, the land available in Malaysia for development of data centre is abundant.
Government has specifically dedicated hubs across the country and provides companies with
special incentives/subsidies and rebates to establish companies in these hubs.
Which is More Preferred- Colocation or Managed Hosting?
Colocation refers to pure space rental, including private vaults, floor space, cage, or racks in
different sizes. It includes basic infrastructure support such as power, cooling, basic network
connectivity and physical security measures. Customers need to purchase their own servers and
deploy their own in-house IT resources to manage the servers.
The Malaysia data centre market is largely dominated by the demand for collocation services.
In 2017, of the total revenue generated by the data centre market, ~% of the share was
contributed by colocation services which amounted to USD ~ million.