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Favorable Government Efforts in Developing Malaysia as a Data Center Hub Remain Key to Industry Growth
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Hyperscale cloud service providers have been key in driving the demand for data center services in Malaysia, with more of these vendors identifying Malaysia as a country with rapid cloud adoption. For instance, earlier in May 2017, Alibaba Cloud announced its plans to open its first data center in Kuala Lumpur, increasing the company’s footprint to a total of 15 data centers worldwide. Additionally, the Malaysian Government has been actively promoting Iskandar, Johor Malaysia, as a data center hub. It is positioning it as an alternative location to Singapore for the hosting of data, for Singaporean companies and global Multi-national Corporations (MNCs) intending to expand into Southeast Asia. In the same vein, the Malaysian Government has been embarking on numerous Smart City initiatives as a part of its Digital Transformation roadmap. A key tenet of these initiatives includes the need for data center modernization, as well as third-party outsourcing of edge data centers for latency-sensitive applications. At the same time, data center modernization has emerged as a leading priority for many enterprises in Malaysia. With rising power costs in Malaysia, many enterprises are taking a keen interest in management capabilities that enable them to keep a tight rein on their data center power utilization. How can data center operators in Malaysia capitalize on the above opportunities, to increase their revenue streams? At the same time, what are some other key growth opportunities that data center service providers can create to support end users in their data center modernization roadmaps, amid the increasingly competitive market participant landscape in Malaysia?
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