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Equinix to build $40m data centre in Malaysia

Written by Wed 30 Nov 2022

Equinix has announced its entry into the Malaysia data centre market with a $40 million investment.

The digital infrastructure company will build a new International Business Exchange data centre in Johor, known as JH1.

“We look forward to deepening our collaboration through future expansion, maximizing local businesses’ digital growth potential with rich digital experiences and outcomes,” said Jeremy Deutsch, President for Asia-Pacific at Equinix.

Scheduled to begin operations in the first quarter of 2024, the new JH1 facility will provide 500 cabinets, 1,960 square meters of colocation space, and access to digital ecosystems made up of more than 2,100 networks and over 3,000 cloud, IT, and system integrator services.

“This new upcoming facility will enhance Malaysia’s capabilities and further strengthen the country’s digital infrastructure backbone, in line with the new national strategic initiative, Malaysia Digital,” said Ts. Mahadhir Aziz, CEO of Malaysia Digital Economy Corporation (MDEC).

The JH1 data centre is planned to be a two-storey facility, located at Nusajaya Tech Park, which is 15km away from Singapore. This proximity allows the Equinix to address excess demand in Singapore as well as Malaysia. Equinix also has the option to acquire additional land at the Tech Park to build a second data centre.

Malaysia’s digital economy is forecast to reach $34 billion in Gross Merchandise Value and a Gross Domestic Product contribution of at least 25.5% by 2025.

“While the digital economy represents a catalyst for the Malaysian economy, data centers are integral in supporting digital ecosystems and their sustained growth,” said Datuk Onn Hafiz Ghazi, Chief Minister of Johor.

Malaysia is one of the top three colocation markets in ASEAN, driven by growing demand and investment from hyperscalers and cloud service providers, as well as national policies supporting digital growth. The Malaysia data centre market is expected to grow at a compound annual growth rate of nearly 10% between 2021 and 2026.

Equinix currently has 51 data centers in the APAC region, and recently announced expansion plans in Chennai, India and Jakarta, Indonesia.

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Written by Wed 30 Nov 2022

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