Equinix enters Malaysian market with US$40mil data centre investment
By Digital News Asia November 30, 2022
- Malaysia, one of the most requested markets in AP by Equinix customers
- Data centre market set to grow at a nearly 10% CAGR during 2021–2026
Equinix, Inc today announced its entry into the Malaysian market with plans to build a new International Business Exchange (IBX) data centre located in Johor and an initial investment of approximately US$40 million (RM180 million)
According to the California-based digital infrastructure company, JH1 will be a two-story facility located at Nusajaya Tech Park (NTP) in Iskandar, Johor. It is scheduled to begin operations in Q1 2024. providing 500 cabinets and 1,960 square meters of colocation space.
It will provide organisations with access to ecosystems made up of more than 2,100 networks and over 3,000 cloud, IT, and system integrator services that Equinix works with globally.
“Establishing a presence in Johor strengthens Equinix’s leadership position in Asia-Pacific within a strategic market such as Malaysia, one of the most requested markets in Asia-Pacific by our global customers. I would like to express our gratitude to the Digital Investment Office (DIO), Invest Johor, and Tenaga Nasional Bhd for their assistance and support. 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, Equinix Asia-Pacific President.
The investment in Malaysia follows its Oct announced US$74 million (RM333 million) direct investment in Indonesia. It entered the market there in 2017 via a partnership with a local player.
The IBX data centre will support Malaysian companies and multinationals doing business in Malaysia with access to Platform Equinix. When opened, it will increase Equinix's total global footprint of more than 245 data centres across 71 metros and 32 countries.
It is expected to also present opportunities for further expansion into new metros and market segments in Malaysia. Equinix also has the option of acquiring additional land in NTP to build a second facility.
Malaysia’s digital economy is forecast to reach US$34 billion in Gross Merchandise Value by 2025, with the country on course to achieve a digital economy contribution to the Gross Domestic Product of at least 25.5% in the same year.
According to Synergy Research, the Malaysia data centre market is expected to grow at a compound annual growth rate (CAGR) of nearly 10% during 2021–2026, showing the need for increased digital services and data centre services capacity. It is ranked as one of the top three colocation markets in ASEAN, with momentum driven by growing demand and investment from hyperscalers and cloud service providers, as well as national policies favourable for digital growth.
Equinix’s expansion in Malaysia will offer opportunities for Malaysian businesses to expand internationally and for multinational corporations pursuing growth and innovation in the Malaysian market. Malaysian companies will benefit from the ability to accelerate their evolution from traditional to digital businesses by rapidly scaling their infrastructure, easily adopting hybrid multi-cloud architectures and interconnecting with strategic business partners within the Platform Equinix ecosystem of more than 10,000 customers.
Equinix’s expansion in Malaysia is in line with the MyDIGITAL initiative launched by the Malaysian Government, which aims to provide a blueprint for the country to accelerate the growth of digital products and services.
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