Data Centers in Penang
1 locations found
Need Help?
Tell us about your needs and our team of experts will help you find and choose the perfect Data Center and solution at the best price.
Explore Other Markets in Malaysia
Penang – Strategic Hub for Southeast Asian Digital Growth
Penang is a growing data center market ideal for companies targeting Southeast Asia. Its strategic location and developing infrastructure provide a solid platform for deploying digital services that require low-latency access to Malaysia and neighboring economic hubs, directly supporting regional availability and performance.
Penang: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity with access to key submarine cable systems. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Kuala Lumpur; private network extensions are available. |
| Power Cost | ~MYR 0.40-0.45/kWh | Based on national industrial rates; fossil fuels dominate the energy mix. |
| Disaster Risk | Moderate (3.3/10) | Primarily exposed to flood risk; seismic and cyclone events are minimal. |
| Tax Incentives | No | No specific data center tax incentives are currently offered. |
| Sales Tax | SST (10% Sales / 8% Service) | Standard Malaysian Sales and Service Tax applies to most transactions. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a key economic zone in Malaysia, Penang offers access to a competitive blend of national and regional carriers. The market supports carrier-neutral facilities, providing choice for building resilient network architectures.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps located within Penang as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure via the primary interconnection hub in Kuala Lumpur, accessible through private network links.
Internet Exchange Points (IXPs): While major public peering points are centered in Kuala Lumpur, enterprises in Penang rely on private peering arrangements and national IP transit services to ensure efficient traffic exchange.
Bare Metal: Bare metal server options are available, typically through providers that service the broader Malaysian market. Services from companies like Hivelocity and OVHcloud can be deployed to support compute-heavy workloads.
Power Analysis
Average Cost Of Power: Industrial electricity rates in Penang are generally in the range of MYR 0.40–0.45/kWh, as of September 2025. This pricing is competitive within the region and helps manage the significant operational expense of high-density computing. The national grid is primarily powered by fossil fuels (~81%), with a growing share from renewables (~19%).
Power Grid Reliability: The power grid serving Penang's industrial zones is well-engineered for commercial needs. Major data center locations typically have access to redundant power feeds from separate substations, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Penang are strategically located near the Bayan Lepas Free Industrial Zone, a major hub for the electronics and high-tech manufacturing industries. This proximity provides low-latency connectivity for supply chain management, IoT, and smart factory applications.
Regional Market Reach: Penang serves as an excellent digital gateway to northern Malaysia and southern Thailand. Its location is advantageous for content delivery, application hosting, and disaster recovery for businesses operating across the Strait of Malacca.
Tax Advantage For Data Centers: Malaysia does not offer specific tax incentives for data center development or operation. The standard corporate tax structure and Sales and Service Tax (SST) apply to all businesses.
Natural Disaster Risk
Penang's overall natural disaster risk is moderate, with a composite INFORM score of 3.3 out of 10, as of September 2025. The risk profile is driven by specific, manageable environmental factors rather than catastrophic threats.
Key hazards include:
- River Flood: The highest individual risk factor (6.8/10), requiring careful site selection in elevated areas.
- Coastal Flood: A notable concern (6.4/10) for facilities located at or near sea level.
- Tsunami: A regional consideration (5.4/10) due to its coastal location, though direct impact probability is low.
- Drought: A minor risk (3.1/10) that can impact water resources for cooling.
- Earthquake: A very low risk (1.9/10), as Malaysia is situated away from major fault lines.
- Tropical Cyclone: Effectively a non-existent risk (0/10).
