US company Equinix invests $5 M in Malaysia to develop its digital infrastructure
In order to increase the capacity of its data centers in Malaysia, the US digital infrastructure company Equinix, Inc. announced on Monday that it would invest MYR 23 million ($5 million) to purchase land from Cyberview Sdn Bhd in Cyberjaya.
Following the opening of its International Business ExchangeTM (IBX®) in Kuala Lumpur (KL1) and Johor (JH1), the company said in a statement that the additional land will be crucial in meeting the growing demand in Malaysia and the larger Southeast Asian region for dependable, high-performance data center services.
The demand for data centers is rising in Malaysia across a range of industries, according to the rapidly expanding digital landscape.
The statement claims that because of Malaysia’s advantageous location, encouraging government regulations, and rising demand for digital infrastructure, the country’s data center market is growing quickly.
Malaysia is emerging as a major player in the digital transformation of Southeast Asia, with aspirations to become a high-income economy driven by digital technology.
A skilled workforce, better connectivity, geopolitical stability, and an emphasis on renewable energy sources are some of the factors driving the data center market, which is projected to grow at a nearly 14 percent compound annual growth rate (CAGR) and reach an estimated $3.97 billion by 2029.
Situated in Cyberjaya, Kuala Lumpur, Malaysia, the procured land is situated less than a kilometer away from the current KL1 establishment.
Covering 14,300 square meters in total, the recently purchased land will act as a strategic addition to KL1, allowing Equinix to further develop its ecosystem in Malaysia to serve a variety of network and cloud service providers, as well as businesses from different industries.
“Selangor aims to accelerate the pace of digitizing our economy, and data centers are a key component of the digital economy backbone,
“Equinix’s investment, renowned for its global expertise in building resilient digital infrastructure and fostering a robust network ecosystem, is poised to contribute significantly to the adoption of cloud technology by Malaysian companies,” said Amirudin Shari, Chief Minister of Selangor, who participated in the document exchange ceremony between Equinix and Cyberview.
According to Cheam Tat Inn, Managing Director of Equinix Malaysia, 96.8% of Malaysians actively participate in a variety of digital activities, including gaming, online shopping, streaming videos, and banking. This indicates that the country has a sizable Internet user base.
