Study Of Data Center Water Consumption In Malaysia

Study Of Data Center Water Consumption In Malaysia Market Analysis

The Study Of Data Center Water Consumption In Malaysia Market size is estimated at 37.73 billion liters in 2025, and is expected to reach 93.09 billion liters by 2030, at a CAGR of 19.8% during the forecast period (2025-2030).

• IT Load Capacity: The IT load capacity of Malaysia's colocation data center market is around 636.24 MW in 2024.
• Geographical Significance: Malaysia, encompassing both peninsular and insular regions, lies within tropical latitudes and experiences a climate marked by high temperatures, humidity, and heavy rainfall. The climatic year is influenced by the northeast and southwest monsoons, resulting in four distinct seasons: the northeast monsoon (November or December to March), the first intermonsoonal period (March to April or May), the southwest monsoon (May or June to September or early October), and the second intermonsoonal period (October to November). The transitions between these monsoons are gradual and not sharply defined. Our research indicates that Malaysia's water consumption is projected to exceed 77 billion liters in 2024.
• Raised Floor Space: Malaysia's colocation data center raised floor space is about 2.28 million sq. ft in 2024.
• Projected Installed Racks: In 2024, Malaysia is set to install over 90,890 racks in its colocation data centers.

Study Of Data Center Water Consumption In Malaysia Market Trends

Colocation and Cloud Service Providers in Malaysia Witness Rising Demand from IT and Telecom Sector

• With the expansion of the digital landscape and the proliferation of data centers, the demand for efficient and sustainable cooling solutions has significantly increased. This surge is primarily driven by the telecom sector's efforts to enhance content, mobile, and cloud services, resulting in a rapid rise in data center demand. Given the critical importance of these facilities, ensuring their uninterrupted operation is essential. As data centers become more interconnected and the demand for WAN connectivity grows, network resources face increased strain. This strain leads to higher storage needs and energy consumption, highlighting the necessity for effective cooling solutions.
• The deployment of 5G technology is expected to escalate consumption rates, thereby intensifying the industry's demand for robust data storage solutions. To fully leverage 5G applications, it is crucial to advance digital infrastructures, particularly data centers. Reflecting this trend, an increasing number of investors are finalizing deals in anticipation of the forthcoming 5G rollout.
• Several cloud providers are entering the Malaysian market. For instance, in May 2024, Google announced plans to invest USD 2 billion in a Malaysian data center and cloud hub. Similarly, Microsoft revealed a USD 2.2 billion investment in the same month, aimed at advancing Malaysia's cloud and AI initiatives.

Malaysia's Liquid Cooling Technology Sees Significant Advancements

• As nations grapple with the urgent challenges posed by climate change, future infrastructure must strive to limit temperature increases to 2°C above pre-industrial levels. In Malaysia, the emphasis on smart district cooling systems is pivotal for refining energy demand management and addressing climate goals.
• Effectively managing thermal loads in telecom facilities and electronic enclosures is paramount. Liquid cooling stands out as a viable solution, boasting a heat-carrying capacity far superior to that of air. To illustrate, water's heat-carrying capability surpasses that of air by roughly 3,500 times. By adopting economizer-based liquid cooling and state-of-the-art metal interfaces, cooling energy consumption can be reduced to a mere 5% of a data center's total energy expenditure. This not only conserves energy but also contributes to a reduction in carbon dioxide (CO2) emissions, aligning with Malaysia's sustainability efforts.
• Malaysia's data center market is experiencing a notable influx of investments. AirTrunk has made its mark with plans for a data center exceeding 150 MW. Equinix and Google are set to enhance the landscape with their hyperscale facilities. Furthermore, many providers are turning to liquid cooling technology to optimize power consumption. A standout innovation in this domain merges indirect evaporative cooling (IEC) with direct-to-chip liquid cooling. This method, particularly embraced by AirTrunk's clientele, facilitates high-density rack deployments and boasts a potential 20% reduction in energy consumption. Such strides are propelling the segment's growth and reinforcing Malaysia's position in the global data center market.

Study Of Data Center Water Consumption In Malaysia Industry Overview

In the highly fragmented landscape of Malaysia's water consumption data center market, five key players stand out. Leading the charge are Bridge Data Centres Group, Keppel DC REIT Management Pte. Ltd., NTT DATA GROUP Corporation, VADS BERHAD (TM One), and YTL Data Center Holdings Pte Ltd (YTL Power International Berhad).

NTT DATA is committed to minimizing the environmental footprint of its IT systems and business operations. In alignment with the global push for urgent climate action, NTT DATA introduced its "NET-ZERO Vision 2040". While information technology has ushered in numerous innovations, it plays a pivotal role in addressing the challenges posed by climate change.

Study Of Data Center Water Consumption In Malaysia Market Leaders

Study Of Data Center Water Consumption In Malaysia Market News

• August 2024: In August 2024, an article highlighted that residents of Penang, Malaysia, are being urged to conserve water. This call to action comes amidst rising concerns over potential water shortages, as dam levels dwindle. Among the numerous water-saving suggestions shared, residents are advised to wash their cars less frequently and to use watering cans for their plants. The Penang Water Supply Corporation, the state-owned entity overseeing water services, reported that the effective capacities of the Air Hitam and Teluk Bahang dams are now at 27.6% and 25.2%, respectively. This water scarcity isn't confined to Penang's dams; key dams in the neighboring states of Kedah and Perak are also feeling the impact.
• June 2024: Malaysians' high water subsidies have inadvertently shaped their consumption habits and routines. In 2023, Malaysia's per capita water consumption averaged 226 liters daily, ranking among the highest in Southeast Asia. This figure significantly surpasses the World Health Organization's (WHO) recommended limit of 165 liters and the 180-liter cap outlined in Malaysia's 11th and 12th Plans. Notably, Malaysia's water usage outpaces that of neighboring countries like Singapore, Indonesia, and the Philippines. Given water's highly subsidized status, there's little incentive for users to conserve or avoid waste. Furthermore, water operators face challenges in maintaining sustainable operations due to the inability to recover operational expenses.