Equinix, Inc., a global digital infrastructure company, is planning to open its first data center in Kuala Lumpur, Malaysia, in the first quarter of 2024. This follows their previous announcement to enter the Malaysian market with a data center in Johor. Malaysia’s rapid growth in cloud services, e-commerce, and 5G investment has made it one of the fastest-growing data center markets in the ASEAN region, particularly in Johor and Kuala Lumpur. Equinix’s expansion aims to meet the increasing demand for digital infrastructure from local and global companies expanding in Malaysia.
As Malaysia enters Phase 2 of its MyDIGITAL blueprint for a digital economy, the need for digital infrastructure is expected to remain strong. Malaysia is already the third-largest data center colocation market in ASEAN and is projected to have a compound annual growth rate of approximately 11% from 2022 to 2027. Equinix, with its expertise in supporting 5G development, intends to accelerate Malaysia’s digital vision outlined in the government’s digital blueprint, positioning the country as a colocation hub in ASEAN and a regional powerhouse in the digital economy. The new data center in Kuala Lumpur, named KL1, along with the previously announced JH1 in Johor, will provide the necessary digital infrastructure for businesses to capitalize on Malaysia’s digital economy.
Jeremy Deutsch, President of Equinix Asia-Pacific, expressed excitement about Malaysia’s emergence as a strategic location for global digital infrastructure. By expanding Platform Equinix® in the two most strategic cities in Malaysia, they aim to provide Malaysian businesses and multinational companies with a trusted platform to interconnect and leverage foundational infrastructure for success. Deutsch believes that Equinix’s data centers will support Malaysia’s aspirations as a digitally-driven connectivity hub.
Key Facts:
- The KL1 data center will be located in Cyberjaya within Kuala Lumpur, a key part of Malaysia’s Multimedia Super Corridor.
- The first phase of KL1, scheduled to open in Q1 2024, will have an initial capacity of 450 cabinets and a colocation space of 1,300 square meters. When fully built, it will offer a total of 900 cabinets and a colocation space of 2,630 square meters.
- KL1 will facilitate the exchange of high volumes of internet traffic through Equinix Internet Exchange®, allowing global networks, content providers, and enterprises to participate in ASEAN’s flourishing digital economy and e-commerce landscape.
- Equinix’s data centers in Malaysia will support multi-cloud connectivity, enabling customers to connect with leading cloud service providers such as Alibaba Cloud, Amazon Web Services (AWS), Google Cloud, and Microsoft Azure in a private and secure environment.
- Equinix currently operates 51 data centers in 13 metros across Asia-Pacific, with expansions planned in Indonesia and Malaysia.
The expansion of Equinix’s data center investment in Malaysia has garnered positive responses from industry analysts and government officials. It reflects confidence in Malaysia’s potential as a top-tier data center destination and will play a crucial role in accelerating the nation’s digital economy. The Malaysian Investment Development Authority (MIDA) and Malaysia Digital Economy Corporation (MDEC) both expressed their commitment to supporting Equinix’s growth and the development of Malaysia’s data center industry. InvestKL highlighted Malaysia’s business-friendly environment, economic fundamentals, and competitiveness that position it as an emerging digital hub in Asia.
