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Equinix’s Dual Metro Data Centres Propel Malaysia’s Digital Economy Ambition to New Heights

DSA Editorial May 27, 2024

5 minutes read

Equinix, Inc. (Nasdaq: EQIX), the world’s digital infrastructure company^®, has unlocked digital opportunities in Malaysia and the wider region with the opening of two International Business Exchange™ (IBX^®) data centers in Johor (JH1) and Kuala Lumpur (KL1). These carrier-neutral facilities establish a robust digital infrastructure in Malaysia to support its digital economy ambition, particularly as a regional digital hub. Malaysia-based businesses will gain access to a global ecosystem of over 10,000 enterprises, networks and cloud service providers, while global businesses can seize the digital opportunities presented by the nation.

As businesses continue to embrace digital transformation and cutting-edge technology like AI, their need for a network-dense, cloud adjacent and on-demand digital infrastructure becomes paramount. Platform Equinix^® plays a pivotal role as a facilitator of innovation, economic growth and empowerment for businesses to flourish in Malaysia, hosting more than 2,000 networks and 3,000 cloud & IT companies, and partnering with global technology leaders. Notably, content, fintech, gaming and AI companies have already chosen to deploy their IT infrastructure on Platform Equinix in Malaysia. In addition, TIME, Maxis and other leading global and local network service providers have already joined Equinix’s network ecosystem in Malaysia to provide a highly interconnected and secure environment for customers on Platform Equinix.

Jeremy Deutsch, President, Asia-Pacific, Equinix, said, “Malaysia is a cornerstone market and top destination that is highly sought after by our valuable customers. Our unwavering dedication to the Southeast Asia region underscores our belief in its immense potential to drive digital transformation and accommodate a growing digital-savvy population. We are dedicated to delivering exceptional digital infrastructure solutions that empower businesses to thrive in this dynamic landscape, fuelling innovation, economic growth and societal advancement.”

Equinix’s entry in Malaysia also aligns with the MyDIGITAL initiative introduced by the Malaysian Government that strives to outline a strategy for the nation to expedite the development of digital products and services.

YB Senator Tengku Datuk Seri Utama Zafrul Abdul Aziz, Malaysia’s Minister of Investment, Trade and Industry (MITI), said, “Equinix’s decision to expand its presence here reflects its continued confidence in Malaysia’s industrial landscape, which is undergoing key transformative initiatives as outlined in the New Industrial Masterplan (NIMP) 2030. One of NIMP’s missions is for Malaysia to tech-up rapidly to make us a digitally vibrant nation, and Equinix’s new data centers in Kuala Lumpur and Johor will support this mission by enhancing Malaysia’s digital infrastructure. These data centers will provide businesses, particularly domestic SMEs, with seamless connectivity and access to a vast global network, while driving innovation across diverse sectors in Malaysia. Most importantly, Equinix’s investment will pave the way for the creation of high-value job opportunities and propel economic growth, empowering our people and businesses to excel in the digital age.”

YB Tuan Lee Ting Han, Johor State Executive Council and Chairman of Investment, Trade and Consumers Affairs; YBhg. Datuk Hanafi Sakri, Deputy Secretary General (Industry), Ministry of Investment, Trade and Industry (MITI); Ir. Wan Murdani Wan Mohamed, Head of Digital Industry Acceleration of Malaysia Digital Economy Corporation (MDEC); and Ms. Noorzita Mohamad Nor, Director, Business Services and Regional Operations Division of Malaysian Investment Development Authority (MIDA) were in attendance to officiate the opening of Equinix JH1.

Highlights/Key Facts

The two-story JH1 facility is situated at Nusajaya Tech Park (NTP) in Iskandar Puteri, Johor. Strategically located 15 kilometers away from Singapore, this data center will address heightened demand from both local enterprises and organizations based in neighboring regions.

With an initial investment of US$40 million, JH1 provides up to 500 cabinets and 1,800 square meters of colocation space to bolster the nation’s digital growth.

The KL1 facility, located in Cyberjaya, Kuala Lumpur, a key part of the Multimedia Super Corridor in Malaysia, is expected to provide a total of 900 cabinets and colocation space of 2,630 square meters, once fully built out.

Equinix data centers in Malaysia are 100% covered by renewables. Equinix is on track to achieve climate neutrality by 2030, with a strong focus on incorporating clean renewable energy sources throughout its worldwide operations. This initiative extends to all facilities, whether newly constructed or recently incorporated into the company’s portfolio. In 2023, Equinix achieved 96% Renewable Energy coverage across its global operations.

Both JH1 and KL1 will be operated efficiently with the globally accepted boundaries of the A1A standards from the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE). This will contribute to the overall efficiency of the data centers, measured by Power Usage Effectiveness (PUE), and could help customers reduce their Scope 3 carbon emissions to meet their overall climate targets.

Equinix will provide robust interconnection and digital services at JH1 and KL1, including Equinix Internet Access in both locations in Q2 2024; Equinix Fabric^® and Equinix Fabric Cloud Router in JH1 in Q2 2024 and KL1 in Q3 2024; and Equinix Internet Exchange^® (IX) soon after. These services enable seamless connectivity, enhanced scalability, optimized performance and increased flexibility to empower businesses to thrive in today’s rapidly evolving digital landscape.

Supporting Quotes

YB Tuan Lee Ting Han, Johor State Executive Council & Chairman of Investment, Trade & Consumer Affairs
“We welcome Equinix’s investment in Johor, which is expected to become the most economically developed state in the country in the near future. Equinix’s world-class facility will enhance our technological capabilities, attract global businesses, create new job opportunities and drive economic growth. This partnership will undoubtedly position Johor as a key player in the digital economy, fostering innovation and propelling our state towards a prosperous future.”

Ts. Mahadhir Aziz, Chief Executive Officer of Malaysia Digital Economy Corporation (MDEC)
“We are proud to have facilitated Equinix’s market entry into Malaysia with its investment in the JH1 and KL1 data centers. These new facilities will significantly enhance Malaysia’s digital capabilities and further strengthen our digital infrastructure backbone, in line with our national strategic initiative, Malaysia Digital. I believe data center investments will certainly create economic spillovers, particularly high value direct and indirect jobs along the value chain. MDEC is committed to fostering effective collaborations to firmly establish the nation as the digital hub of ASEAN.”

Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer, Malaysian Investment Development Authority (MIDA)
“We welcome Equinix’s expansion in Malaysia, a move that reinforces the country’s standing as a digital hub in the region. This venture further underscores our commitment to fostering an investor-friendly business environment. Equinix’s advanced data centers will create significant opportunities for businesses especially local enterprises to innovate and grow as they integrate with the global ecosystem. MIDA is dedicated to facilitating investments like Equinix’s, which not only drive economic growth but also foster innovation and create sustainable employment opportunities in Malaysia.”

Mr. Cheam Tat Inn, Managing Director, Equinix Malaysia
“We firmly believe that the opening of JH1 and KL1 data centers signals a new era of digital connectivity and innovation in Malaysia. These IBX data centers serve as the cornerstone for driving business agility, fostering collaboration and fueling economic prosperity. By providing businesses with unparalleled access to global networks and cutting-edge technology, Equinix is poised to revolutionize the digital landscape and propel Malaysia into the forefront of the global digital economy.”