Equinix has acquired land in Cyberjaya, Malaysia to expand its data center capacity in the country.
The colo provider stated on July 29 that it had invested RM23 million (approximately $5 million) in acquiring land in Cyberjaya, Kuala Lumpur, from Cyberview Sdn Bhd.
According to the company, this additional land will be "instrumental" in meeting increased demand in Malaysia and Southeast Asia.
The plot acquired spans 14,300 sqm (153,924 sq ft) and is less than one kilometer from Equinix's existing KL1 data center in Kuala Lumpur which launched in May 2024 alongside another facility in Johor.
Dato’ Seri Amirudin Shari, Chief Minister of Selangor, said: “Selangor aims to accelerate the pace of digitizing our economy, and data centers are a key component of the digital economy backbone. Equinix's investment, renowned for its global expertise in building resilient digital infrastructure and fostering a robust network ecosystem, is poised to contribute significantly to the adoption of cloud technology by Malaysian companies.”
Equinix Malaysia's managing director, Cheam Tat Inn, added: “Malaysia boasts a substantial Internet user base, with a staggering 96.8 percent of the population actively engaging in various digital activities such as video streaming, online shopping, online banking, and gaming. Consequently, businesses operating in Malaysia are increasingly seeking secure and scalable data center services and access to digital ecosystems to meet the demands of this tech-savvy consumer base."
Equinix has two existing data centers in Malaysia - JH1 and KL1. JH1 offers 500 cabinets across 1,960 sqm (21,097 sq ft) of colocation space, while KL1 will provide 900 cabinets over 2,630 sqm (28,309 sq ft) of colocation space once fully built.
Malaysia has seen significant data center investment over the last few years, taking the spillover from Singapore after the city-state imposed a moratorium in 2019 on data center development.
While the moratorium was eased slightly in 2022, and major developers including Equinix, Microsoft, AirTrunk, and GDS were invited to develop up to 80MW of data center space in Singapore in mid-2023, Malaysia has continued to see interest from investors.
According to a report from Arizton on the Malaysian data center market, this growth is due to factors such as geopolitical stability, a skilled workforce, improved connectivity, and a focus on renewable energy sources. The data center market is expected to grow at a CAGR of nearly 14 percent and reach an estimated $3.97 billion by 2029.
