PETALING JAYA: Real estate consulting firm JLL predicts a 107% growth in the market value of edge IT infrastructure and data centres globally by 2026, from USD153mil (RM660.8mil) in 2020 to USD317bil (RM1.37 trillion). Concurrently, JLL predicts the IoT devices market, the key component of edge IT infrastructures, will expand at a compound annual growth rate (CAGR) of 9.8% over the next five years.
JLL’s estimate for the edge IT infrastructure and data centres market comprises the complete IT infrastructure, colocation revenue, colocation supply and cloud services revenue. From the IT infrastructure lens, the edge computing market consists of all the IT hardware, including storage, computing and networking equipment that enable the delivery of digital services at the furthest points of a network.
In Malaysia, edge data infrastructure has been developed in and around Kuala Lumpur, with other key areas including Penang and Johor, according to JLL (Malaysia) head of research and consultancy, Yulia Nikulicheva.
“The major players in this sector include Aims, Edge Centres, Alpha Edge by TM One, YTL, and NTT. With existing facilities experiencing a utilisation rate of over 90%, indicating high demand, we expect continued investment and growth in this segment,” she said.
“This growth is driven by evolving trends in artificial intelligence, extensive data usage, streaming services, Fintec, and other factors. As demand for agile services continues to rise, we anticipate the construction of more edge-type data centres in other states, as operators aim to provide more responsive service to their clients,” added Nikulicheva.
JLL defines an edge data centre as a facility that brings computing power closer to where the data is generated or consumed.
Nikulicheva expects continued investment and growth in edge data infrastructures and data centres.
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