Equinix expands in Malaysia: KL1 data center to open in Q1 2024

Rick Steves

“Over the past several years, we have witnessed Malaysia emerge as an increasingly strategic location for global digital infrastructure, and we believe it to be an attractive destination for data center growth and investment.”

Equinix has announced plans to open its first data center in Kuala Lumpur in Q1 2024, following its expansion announcement last year to enter Malaysia with a data center in Johor.

The digital infrastructure company expects demand to remain robust in Malaysia as the country enters Phase 2 of its MyDIGITAL blueprint for a digital economy and is already the third largest data center colocation market in the ASEAN region, forecast to have a compound annual growth rate (CAGR) of approximately 11% from 2022–2027, according to a report by Synergy Research.

With Malaysia growing as a strategic regional hub for digital interconnection between businesses, Equinix will leverage its extensive experience in supporting 5G development to accelerate the digital vision laid out in the government’s MyDIGITAL blueprint.

The new facility in Kuala Lumpur, named KL1, together with the recently announced JH1 in Johor, will also provide the digital infrastructure that businesses need to capitalize on the country’s digital economy.

KL1 will provide a total of 900 cabinets and colocation space of 2,630 sq meters

The KL1 IBX® data center will be located in Cyberjaya within Kuala Lumpur. Cyberjaya is a key part of the Multimedia Super Corridor in Malaysia, a government-designated zone to promote and boost Malaysia’s digital economy. Scheduled to open in Q1 2024, the first phase of KL1 will provide an initial capacity of 450 cabinets and colocation space of 1,300 square meters. When fully built, it will provide a total of 900 cabinets and colocation space of 2,630 square meters.

KL1 will enable global networks, content providers and enterprises to exchange high volumes of internet traffic via Equinix Internet Exchange®. Through one of the world’s largest global peering solutions at scale, internet service providers will have access to new digital corridors to exchange data directly with other internet service providers, participating in the flourishing digital economy and e-commerce landscape in ASEAN.

The new data center and Equinix Fabric will enable customers to deploy their infrastructure to connect with the world’s leading cloud service providers, including Alibaba Cloud, Amazon Web Services (AWS), Google Cloud, and Microsoft Azure, safeguarding their business-critical data in a private and secure environment.

In Asia-Pacific, Equinix currently operates 51 data centers in 13 metros across Australia, China, Hong Kong, India, Japan, Korea, and Singapore, with expansions announced in Indonesia and Malaysia.

Malaysia as a strategic location for global digital infrastructure

Jeremy Deutsch, President, Asia-Pacific at Equinix, said: “Over the past several years, we have witnessed Malaysia emerge as an increasingly strategic location for global digital infrastructure, and we believe it to be an attractive destination for data center growth and investment. Following our initial investment in Johor, we are excited to add another data center in Kuala Lumpur. By expanding Platform Equinix in the two most strategic metros in Malaysia, we will enable Malaysian businesses, as well as multinationals with a presence in Malaysia, to leverage a trusted platform to bring together and interconnect the foundational infrastructure to power their success. We believe the two data centers will fuel Equinix’s existing data center momentum and support Malaysia’s aspirations as a digitally driven connectivity hub.”

John Dinsdale, Chief Analyst & Research Director, Synergy Research Group, said: “Malaysia is a vibrant market for digital infrastructure, driven by a strong economy, growing demand for digital services, a favorable location and increasing investments from the world’s leading hyperscale operators. That is opening up major long-term growth opportunities for leading data center operators.”

YBhg. Datuk Wira Arham Abdul Rahman, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), commented: “Equinix’s decision to expand its data center investment in Malaysia with locations in Johor and Kuala Lumpur demonstrates the company’s confidence in Malaysia’s potential as a top-tier data center destination. The establishment of the two new data centers will play a pivotal role in accelerating the development of the nation’s digital economy. These data centers will act as catalysts for digital innovation, enabling businesses to harness the power of advanced technologies such as cloud computing, artificial intelligence and big data analytics. As the principal national promotion agency, MIDA remains committed to supporting Equinix’s growth and success in Malaysia as we continue to propel Malaysia’s digital economy to greater heights.”

Mahadhir Aziz, Chief Executive Officer of Malaysia Digital Economy Corporation (MDEC), added: “Equinix’s investment and expansion in Malaysia propels us closer to our vision of firmly establishing Malaysia as the digital hub of ASEAN. The Malaysia Digital (MD) national strategic initiative serves as a catalyst to revolutionize our digital capabilities, bolstering our value proposition to attract digital investments and propel the digital economy forward. We are committed to supporting Equinix’s presence in Malaysia and to fostering the growth of the nation’s data center industry through various PEMANGKIN initiatives. KL1 not only fortifies Malaysia’s digital infrastructure but also accelerates our ongoing digital transformation. This move signifies unwavering confidence in Malaysia’s resilient and robust data center ecosystem, its digitally skilled talent pool, and world-class infrastructure.”

Datuk Muhammad Azmi Zulkifli, Chief Executive Officer of InvestKL, stated: “I am pleased to learn of Equinix’s growing presence in Malaysia. This growth story is an affirmation of the country’s ease of doing business, strong economic fundamentals and competitiveness which further positions us as the emerging digital hub in Asia. It is no surprise that the KL1 data center has been strategically placed in Kuala Lumpur. Kuala Lumpur offers a vibrant tech ecosystem, robust digital infrastructure and dynamic talent that is well-enabled to support Equinix’s investment goals and aspiration of supporting Malaysia’s digital transformation.”

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