Malaysia's heating, ventilation, air conditioning, and refrigeration (HVAC&R) industry is ushering in a new wave of demand shifts.
With the accelerated construction of data centers, cooling equipment that previously served commercial buildings and industrial facilities is increasingly entering high-density computing infrastructure. For equipment manufacturers, industry competition has gradually extended from mere cooling capacity to energy efficiency, operational stability, and long-term service capabilities.
Recently, at MARVEX 2026 held at the Kuala Lumpur Convention Centre, Dunham-Bush won the MIEAD Malaysian HVAC&R Industry Leadership Excellence Award and showcased several core products, including the WCM Water-Cooled Magnetic Bearing Chiller and DB-Aire Precision Air Conditioning.
Corresponding to this shift is Malaysia's rapidly growing data center market.
According to the latest data from the Malaysian Investment Development Authority (MIDA), Malaysia recorded a cumulative total of MYR 385.7 billion in data center-related investments between 2021 and the first half of 2026. In the first half of 2026 alone, approved investments in data center and cloud computing projects reached MYR 95.8 billion, accounting for approximately 44% of total approved investments nationwide during the same period.
The expansion of investment scale also implies that data centers are imposing higher demands on power and cooling infrastructure.
Data shows that in the second week of August 2026, data center power consumption in Malaysia briefly accounted for 9.3% of total national electricity consumption, higher than the annual average level of approximately 7%. As server power density and computing demand continue to rise, cooling systems are no longer merely supporting facilities for data centers, but have become a crucial link affecting project energy consumption and operating costs.
From "Selling Equipment" to Solving High-Density Computing Cooling Challenges
One of the biggest differences between data centers and traditional office buildings or shopping malls is that their cooling equipment must not only run continuously 24/7 year-round, but its heat generation and cooling demands are also tied closely and in real-time to server computing loads.
This means that the cooling system must not only provide sufficient cooling capacity, but also maintain stable operation under varying load conditions while minimizing energy consumption as much as possible.
In recent years, Dunham-Bush has elevated data center cooling as one of its key business directions. Core products showcased at MARVEX, such as the WCM Water-Cooled Magnetic Bearing Chiller and DB-Aire Precision Air Conditioning, are all targeted at application scenarios with high requirements for temperature control, stability, and energy efficiency.
Yu Baoshuang, Managing Director of Dunham-Bush Malaysia, stated that winning this industry award is both an affirmation of the company's 130-plus years of engineering technology accumulation and a reflection of the market's high level of attention toward efficient, reliable, and sustainable cooling technologies.
"As a local manufacturing enterprise rooted in Malaysia, we hope to provide products and cooling technology systems for more data center projects regionally and globally in the future," he said.
For data center clients, cooling equipment itself is only one part of the overall project. As facility scales expand, equipment selection, system integration, installation, commissioning, and subsequent maintenance all require manufacturers to possess more comprehensive technical and service capabilities.
This has also become an important direction for Dunham-Bush to further expand its Malaysia operations.
85% of Products Exported: Malaysia Manufacturing Connecting Global Markets
Yu Baoshuang introduced that Dunham-Bush possesses a complete manufacturing, R&D, and service team in Malaysia, with approximately 85% of its products sold to international markets. Relevant cooling products have already supplied data center projects in the United States, Australia, Malaysia, and Southeast Asia.
At the same time, growing data center demand is reshaping the company's business structure in the local market.
Yu Baoshuang revealed that the market share of data center cooling equipment in Malaysia increased by 10% this year. As local projects continue to rise, the company is further expanding its manufacturing and service capabilities.
Just prior to MARVEX 2026, Dunham-Bush Industries Sdn Bhd acquired approximately 32 acres of industrial land in Senawang, Negeri Sembilan. The new facility is expected to involve an initial investment of MYR 172 million, which will further enhance manufacturing capacity for chillers and advanced HVAC products in the future, creating more engineering, technical, and professional roles.
From market demand to capacity expansion, Dunham-Bush's business in Malaysia is witnessing a clear shift: it is no longer just a production base, but is gradually becoming a vital node connecting clients, technology, and regional markets for the enterprise.
Why Malaysia?
Southeast Asian data center investments have continued to rise in recent years, with markets like Malaysia, Singapore, and Indonesia competing for data center and cloud computing infrastructure investments.
For cooling equipment manufacturers, wherever clients build data centers, supply chain and service capabilities must extend accordingly.
Malaysia possesses a mature manufacturing foundation while connecting multiple Southeast Asian markets. For Dunham-Bush, expanding manufacturing capacity locally can shorten the distance from production and delivery to service, while leveraging existing teams and supply chains to respond faster to regional client needs.
This is also what makes the new industrial land investment particularly noteworthy.
If HVAC enterprises previously established operations in Malaysia primarily for manufacturing, the function assumed by the manufacturing base is evolving alongside increasing demand for high-tech infrastructure like data centers-it serves not only as a production platform, but also as part of the technical support and regional service network.
For data centers requiring year-round continuous operation, installation, commissioning, maintenance, and upgrades remain after equipment delivery. Whether a manufacturer can establish stable technical and service capabilities within the client's region is becoming an important factor in long-term project operations.
Therefore, Dunham-Bush's expansion of Malaysian manufacturing capacity is not simply about increasing output. More importantly, it represents an effort to leverage Malaysia's growing data center demand to further connect manufacturing, technology, and service, thereby covering a broader global market.
