KUALA LUMPUR – Digital infrastructure company Equinix today announced its expansion into the Malaysian market with construction plans for an international digital exchange (IBX) data centre in the Iskandar area of Johor.
The US$40 million (RM178 million) data centre, called JH1, is set to commence operations in the first quarter of 2024. It will allocate 1,960sq m of co-location space for companies.
The IBX data centre will assist Malaysian and multinational companies operating in the country by providing access to Platform Equinix, the US-based company’s ecosystem that connects businesses across the globe.
In a statement, Equinix forecast the Malaysian digital economy to reach US$34 million in gross merchandise value by 2025, while contributing to GDP by at least 25.5% the same year.
The company, whose headquarters is in Redwood City, California, said it believes its expansion into Malaysia will benefit local businesses by giving them opportunities to expand internationally, and vice-versa.
It also said that Malaysian companies stand to benefit from the expansion, as they will have a platform that scales their infrastructure, adopts hybrid multi-cloud architecture, and interconnects them with over 10,000 strategic business partners within the ecosystem, which allows businesses to easily shift from traditional to digital.
Johor Menteri Besar Datuk Onn Hafiz Ghazi said he welcomes Equinix’s investment in the data centre, as it is essential for growth in the digital ecosystem.
“While the digital economy represents a catalyst for the Malaysian economy, data centres are integral in supporting digital ecosystems and their sustained growth,” he said.
“We welcome this investment by Equinix, along with the global expertise they bring to Johor, as well as the rich digital experiences and outcomes that will benefit this state and the country.
“We are looking forward to working together in transforming Malaysia into a digitally driven, high-income nation at the forefront of this region’s digital economy,” he added.
Meanwhile, Equinix Asia-Pacific president Jeremy Deutsch commented that establishing its presence in a sought-after market by its clients will fortify its competitive advantage in Asia Pacific.
“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 the region by our global customers,” he said.
He also extended his gratitude to firms such as Digital Investment Office, Invest Johor, and Tenaga Nasional Bhd for their assistance and support during the expansion.
Equinix is a digital infrastructure corporation that interconnects organisations in an online platform, allowing businesses to interconnect foundational infrastructure at software speed and access optimal locations, partners, and business possibilities.
Its clients include Netflix Inc., Cisco Systems Inc., and Sime Darby Sdn Bhd.
Malaysia is the company’s second expansion in Southeast Asia, with Indonesia being its first expansion just recently. – The Vibes, November 30, 2022
