Nasdaq listed Equinix, Inc. the world’s digital infrastructure company has announced its market entry into Malaysia with plans to build a new International Business Exchange TM (IBX) data center located in Johor, called JH1.
The initial investment is to be approximately $40 million equivalent to RM180 million. The centre is scheduled to begin operations in Q1 2024, providing 500 cabinets and 1,960 square meters of colocation space. The IBX data center is aimed to support local 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, 1 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 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. Datuk Onn Hafiz Ghazi, Chief Minister of Johor, said: “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 region’s 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 region’s digital growth. Jeremy Deutsch, President, Asia-Pacific, Equinix, commented: “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.