US’s Equinix Expands Data Center Footprint in Malaysia with USD 5 Million Investment

August 2024

Equinix, Inc., a digital infrastructure company based in the United States, has announced a MYR 23 million (USD 5 million) investment to acquire land from Cyberview Sdn Bhd, a technology hub developer in Cyberjaya, Malaysia. This strategic acquisition aims to bolster Equinix’s data center capacity in response to the growing demand across various industries in Malaysia.

Following the successful launches of its International Business Exchange™ (IBX) data centers in Kuala Lumpur (KL1) and Johor (JH1), this additional land in Cyberjaya—less than one kilometer from the existing KL1 facility—will play a key role in meeting the increasing need for reliable, high-performance data center services. The 14,300-square-meter site is poised to enhance Equinix’s ecosystem in Malaysia, supporting a broad spectrum of network and cloud service providers as well as enterprises from diverse sectors. Equinix currently operates two data centers in Malaysia: JH1, which offers 500 cabinets and 1,960 square meters of colocation space, and KL1, set to provide 900 cabinets and 2,630 square meters of colocation space upon full completion. These facilities have already attracted a range of companies from sectors such as networking, content delivery, fintech, gaming, and artificial intelligence to deploy their IT infrastructure.

As Malaysia’s digital economy now contributes 23% to the nation’s GDP, and with Cyberjaya being home to the highest concentration of tech companies, the demand for data centers is rapidly increasing. Malaysia’s strategic location, favorable government policies, and rising need for digital infrastructure are fueling this expansion. As Southeast Asia emerges as a major hub for digital transformation, Malaysia is positioning itself as a key player with aspirations to become a digitally-driven, high-income economy. The data center market in the country is projected to grow at a compound annual growth rate (CAGR) of nearly 14%, reaching an estimated USD 3.97 billion by 2029, driven by factors like geopolitical stability, a skilled workforce, improved connectivity, and a focus on renewable energy.

(Sources: Equinix; TechNode)

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