In a move that bolsters Malaysia’s standing as a strategic regional hub for digital interconnection, Equinix, Inc., a global leader in data center solutions, has announced its plans to establish its first data center in Kuala Lumpur. This expansion follows Equinix’s earlier announcement to enter Malaysia with a data center in Johor. The company’s entry into the Malaysian market is driven by the country’s rapid growth in cloud services and e-commerce, as well as its ongoing investment in 5G technology.
Malaysia is one of the fastest-growing data center markets in the APAC region, with significant development happening in Johor and Kuala Lumpur. Equinix’s expansion is expected to meet the increasing demand for digital infrastructure from local and global companies seeking to expand their presence in Malaysia.
The expansion aligns with Malaysia’s MyDIGITAL blueprint, a roadmap for the country’s digital infrastructure. As Malaysia enters Phase 2 of this initiative, the demand for digital infrastructure is expected to remain strong. According to Synergy Research, Malaysia currently ranks as the third-largest data center colocation market in the APAC region and is projected to achieve a compound annual growth rate (CAGR) of approximately 11% from 2022 to 2027.
Equinix brings extensive global experience in supporting 5G development, and its new data center facility in Kuala Lumpur aims to accelerate the government’s vision of establishing Malaysia as a colocation hub in APAC and a regional digital economic powerhouse.
Key features of the Equinix data center in Kuala Lumpur
Location and Capacity: The new data center, named KL1, will be situated in Cyberjaya, within Kuala Lumpur’s Multimedia Super Corridor—a government-designated zone aimed at promoting Malaysia’s digital economy. The first phase of KL1, scheduled to open in Q1 2024, will offer an initial capacity of 450 cabinets and colocation space of 1,300 square meters. Once fully built, it will comprise 900 cabinets and a colocation space of 2,630 square meters.
Connectivity: KL1 will facilitate the exchange of high volumes of internet traffic through Equinix Internet Exchange®, enabling global networks, content providers, and enterprises to establish robust connections. The data center will serve as a gateway for internet service providers, granting them access to new digital corridors for data exchange, thus fostering the flourishing digital economy and e-commerce landscape in the ASEAN.
Cloud Services: With its reputation as an attractive digital infrastructure and cloud services hub, Malaysia offers the additional capacity to meet the growing demand for digital infrastructure in neighboring Singapore. KL1, together with Equinix Fabric®, will empower customers to deploy their infrastructure and connect with leading cloud service providers, including Alibaba Cloud, Amazon Web Services (AWS), Google Cloud, and Microsoft Azure. This will ensure the secure storage of critical business data in a private environment.
Equinix currently operates 51 data centers in 13 metros across the Asia-Pacific region, including Australia, China, Hong Kong, India, Japan, Korea, and Singapore. Equinix had made an investment of around $74 million in an International Business Exchange (IBX) data center located in the heart of Jakarta, Indonesia. This move signifies Equinix’s commitment to supporting the digital infrastructure needs of both domestic businesses and multinational corporations in Indonesia. Leveraging its trusted platform, Equinix aims to facilitate the interconnection of foundational infrastructure, empowering businesses to thrive in the digital landscape.
Equinix’s expansion into Indonesia and Malaysia is a testament to the growing demand for reliable and secure data center services in the region.