Equinix will invest US$40 million (S$54 million) to build its first data centre in Malaysia at Johor.
The new International Business Exchange (IBX) data centre, called JH1, is scheduled to begin operations in the first quarter of 2024 and will provide 500 cabinets and 1,960 square metres of colocation space.
The JH1 will be a two-story facility, located at Nusajaya Tech Park (NTP) in Iskandar, Johor which is around 15 km from Singapore.
Equinix said the IBX data centre will support Malaysian companies and multinationals doing business in Malaysia with access to its Platform Equinix “to bring together and interconnect the foundational digital infrastructure that powers their success”.
The company said the location of JH1 will allow the data centre to address excess demand from Singapore customers, in addition to catering to Malaysian domestic demand.
Equinix also has the option of acquiring additional land in NTP to build a second facility.
This expansion marks Equinix’s second foray into the ASEAN region (apart from its presence in Singapore), following its recently announced plans to expand into Indonesia.
In October the company said it will invest US$74 million to build an IBX data centre in Jakarta.
When opened, the Johor data centre will increase Equinix's total global footprint of more than 245 data centres across 71 metros and 32 countries.
The company has more than 10,000 customers globally.
In Asia-Pacific, Equinix currently has 51 data centres across 13 metros across Australia, China, Hong Kong, India, Japan, Korea and Singapore.
In addition, Equinix also announced expansions into Chennai in India apart from the Jakarta investment announced in October.
Malaysia is one of the top three colocation markets in the Asean region, with momentum driven by growing demand and investment from hyperscalers and cloud service providers, as well as national policies favourable for digital growth, Equinix said.
According to Synergy Research, the Malaysia data centre market is expected to grow at a compound annual growth rate (CAGR) of nearly 10 percent during 2021–2026.
Equinix’s Asia Pacific President, Jeremy Deutsch said: “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 Asia-Pacific by our global customers.
“I would like to express our gratitude to the Digital Investment Office (DIO), Invest Johor, and Tenaga Nasional Berhad (TNB) for their assistance and support. We look forward to deepening our collaboration through future expansion, maximizing local businesses' digital growth potential with rich digital experiences and outcomes.”