Equinix enters Malaysia with $40m data center investment

Equinix has announced its market entry into Malaysia with plans to build a new International Business ExchangeTM (IBX) data center located in Johor, called JH1. 

With an initial investment of approximately $40 million, JH1 is scheduled to begin operations in Q1 2024, providing 500 cabinets and 1,960 square meters of colocation space. The world-class IBX data center will support Malaysian companies and multinationals doing business in Malaysia with access to Platform Equinix to bring together and interconnect the foundational digital infrastructure that powers their success. 

Malaysia's digital economy is forecast to reach $34 billion in Gross Merchandise Value by 2025, with the country on course to achieve a digital economy contribution to Gross Domestic Product of at least 25.5% the same year.

Equinix's expansion in Malaysia will unlock opportunities for Malaysian businesses expanding internationally and for multinational corporations pursuing growth and innovation in the Malaysian market. Malaysian companies will benefit from the ability to accelerate their evolution from traditional to digital businesses by rapidly scaling their infrastructure, easily adopting hybrid multicloud architectures and interconnecting with strategic business partners within the Platform Equinix ecosystem of more than 10,000 customers.

"Equinix's expansion in Malaysia is in line with the MyDIGITAL initiative launched by the Malaysian Government, which aims to provide a blueprint for the country to accelerate growth of digital products and services," says Datuk Onn Hafiz Ghazi, Chief Minister of Johor.

"While the digital economy represents a catalyst for the Malaysian economy, data centers are integral in supporting digital ecosystems and their sustained growth. 

"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 regions digital economy."

This expansion marks Equinix's second foray into ASEAN (the Association of Southeast Asian Nations) following the recently announced plans to expand into Indonesia, allowing the company to address digital infrastructure demand critical to the regions digital growth. 

Jeremy Deutsch, President, Asia-Pacific, Equinix, says, "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."

 JH1, a two-story facility, will be located at Nusajaya Tech Park (NTP) in Iskandar, Johor. It is 15 kilometers from Singapore, allowing the data center to address excess demand from organizations in the city-state in addition to Malaysian domestic demand. 

Equinix also has the option of acquiring additional land in NTP to build a second facility, supporting Malaysias digital growth aspirations. Companies and multinationals doing business in Malaysia will be able to access Platform Equinix to store and distribute large volumes of latency-sensitive data and applications closer to end users and local markets. 

Malaysia is one of the top three colocation markets in ASEAN, with momentum driven by growing demand and investment from hyperscalers and cloud service providers, as well as national policies favorable for digital growth. According to Synergy Research, the Malaysia data center market is expected to grow at a compound annual growth rate (CAGR) of nearly 10% during 20212026.3 This shows the need for increased digital services and data center services capacity in Malaysia.