Malaysia’s data centre industry revenue to exceed RM1 bln this year

KUALA LUMPUR: Malaysia Digital Economy Corporation Sdn Bhd ( MDEC) is optimistic that revenue generated by the data centre service industry in the country would exceed RM1 billion this year.

Director of Digital Enablement Ir Wan Murdani Wan Mohamad said MDEC also planned a 10-15 per cent annual growth for the data service sector, while turning it into a RM2 billion revenue generating industry by 2020, with the provision of more incentives to attract foreign players The industry is currently valued at around RM900 million, which is relatively low, when compared to leading players like Singapore and Hong Kong.

He told journalists this after a briefing on Malaysia’s data centre industry here yesterday.

Wan Murdani said to boost the industry further, MDEC is looking at two initiatives, namely inviting more foreign companies to Malaysia to subscribe to services provided by the local operators, as well as through foreign direct investments (FDIs).

“Besides providing incentives, MDEC also has a few programmes to upskill the capability of local players, while providing market access to higher valued customers.

“We have seen the traction in our various programmes, with positive growth in the number of foreign companies subscribing to local data centres services,” he added.

He said revenue from international clients subscribing to Malaysia’s data centre had increased from five per cent a few years back to almost 20 per cent now. Malaysia, currently has more than 20 data centres, with more than 90 per cent owned by local players.

“We do not have a big data centre yet in Malaysia, apart from those owned by Nippon Telegraph and Telephone Corporation, and are looking at more than three international companies in the future.