As the world’s digital landscape continues to grow at breakneck speeds, Malaysia, in turn, has been experiencing a surge in demand for data centres.
Recognising this, Nasdaq-listed company Equinix will be making an investment of RM23 million (approximately US$5 million) to acquire land from Cyberview in Cyberjaya to expand its data centre capacity in Malaysia, a July 29 press release announced.
This additional land will be “instrumental in addressing the rising demand for reliable, high-performance data centre services in Malaysia and the broader Southeast Asian region,” the release pointed out.
Located in Malaysia’s global tech hub of Cyberjaya, the acquired land is less than 1km from the existing KL1 facility.
With a total area of 14,300 square metres, the newly acquired land will serve as a strategic complement to KL1, enabling Equinix to further enhance its ecosystem in Malaysia to cater to a wide range of network and cloud service providers.
This investment follows news of other tech giants investing in Malaysia, including Microsoft and Google.
Who is Equinix?
Dubbed the world’s digital infrastructure company, Equinix is an American multinational company headquartered in California.
Specialising in internet connection and data centres, the platform enables organisations to access all the right places, partners, and possibilities to scale, launch, and deliver world-class experiences.
Equinix is a leader in global colocation data centre market share, with 260 data centres in 33 countries on five continents.
Equinix first entered Malaysia in 2022 with its ExchangeTM (IBX®) data centre located in Johor, called JH1.
Currently, it has two data centres in Malaysia, JH1 and KL1. JH1 offers 500 cabinets and 1,960 square metres of colocation space. The KL1 will provide 900 cabinets and 2,630 square metres of colocation space once fully built.
According to the press release, these facilities have already attracted various network, content, fintech, gaming, and AI companies to deploy their IT infrastructure.
Malaysia is home to prime real estate
As Southeast Asia becomes a significant hub for digital transformation, Malaysia is emerging as a key player.
For one, Malaysia’s data centre market has been rapidly expanding. This is largely due to the country’s strategic location as well as supportive government policies, which makes Malaysia poised to address the increasing demand for digital infrastructure.
Other factors that contribute to Malaysia’s emergence as a key player include geopolitical stability, a skilled workforce, improved connectivity, and a focus on renewable energy sources.
Cheam Tat Inn, Managing Director, Equinix Malaysia, pointed out that Malaysia boasts high internet penetration, with 96.8% of the population actively engaging in various digital activities such as video streaming, online shopping, online banking, and gaming.
“Consequently, businesses operating in Malaysia are increasingly seeking secure and scalable data centre services and access to digital ecosystems to meet the demands of this tech-savvy consumer base,” he said.
Companies like Equinix are thus tapping into that demand.
According to Kamarul Ariffin Abdul Samad, CEO of Cyberview, Cyberjaya has been home to the highest concentration of tech companies in Malaysia.
He said, “Last year alone, Cyberjaya saw a rapid increase in data centre investment and today, with the land expansion of Equinix, this is a testament to Cyberview’s commitment in fostering innovation and ensuring that Cyberjaya continues to be the preferred investment location for tech companies.”
Featured Image Credit: Equinix
