Equinix acquires land to expand digital infrastructure in Malaysia

• New land will expand Equinix’s ecosystem for service providers and enterprises
• This follows the launch of Equinix’s International Business Exchange in Johor & KL

In the rapidly growing digital landscape, Malaysia is experiencing a surge in demand for data centers across various industries. Recognising this potential, Equinix, Inc., a digital infrastructure company, has announced a US$5 million (RM23 million) investment to acquire land from Cyberview Sdn Bhd in Cyberjaya, expanding its data center capacity in Malaysia.

Following the launches of its International Business Exchange™ (IBX®) in Kuala Lumpur (KL1) and Johor (JH1), the additional land will be instrumental in addressing the rising demand for reliable, high-performance data center services in Malaysia and the broader Southeast Asian region, the company said in a statement.

Malaysia's data center market is rapidly expanding due to its strategic location, supportive government policies, and increasing demand for digital infrastructure. As Southeast Asia becomes a significant hub for digital transformation, Malaysia is emerging as a key player, aspiring to transform into a digitally-driven, high-income economy. Factors such as geopolitical stability, a skilled workforce, improved connectivity, and a focus on renewable energy sources are propelling the data center market, which is expected to grow at a CAGR of nearly 14% and reach an estimated US$3.97 billion (RM18.4 billion) by 2029.

Located in Malaysia’s Global Tech Hub of Cyberjaya, Kuala Lumpur, the acquired land is less than one kilometre from the existing KL1 facility. With a total area of 14,300 square metres, the newly acquired land will serve as a strategic complement to KL1, enabling Equinix to further enhance its ecosystem in Malaysia to cater to a wide range of network and cloud service providers, as well as enterprises spanning various industries.

Amirudin Shari, Chief Minister of Selangor, participated in the document exchange ceremony between Equinix and Cyberview. At the ceremony, he said, “Selangor aims to accelerate the pace of digitising our economy, and data center 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.” 

“Malaysia boasts a substantial Internet user base, with a staggering 96.8% 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's unique positioning and competitive edges make it the company of choice,” said Cheam Tat Inn, Managing Director, Equinix Malaysia. 

Meanwhile, Kamarul Ariffin Abdul Samad, CEO of Cyberview, said, “The digital economy contributes 23% to the country’s GDP and with Cyberjaya having the highest concentration of tech companies in Malaysia, the city plays a pivotal role in contributing to the growth of Malaysia’s digital economy. Last year alone, Cyberjaya saw a rapid increase in data center investment and today, with the land expansion of Equinix, this is a testament to Cyberview’s commitment to fostering innovation and ensuring that Cyberjaya continues to be the preferred investment location for tech companies.” 

Equinix currently has two data centers in Malaysia, JH1 and KL1. JH1 offers 500 cabinets and 1,960 square metres of colocation space, while KL1 will provide 900 cabinets and 2,630 square metres of colocation space once fully built. These facilities have already attracted various network, content, fintech, gaming, and AI companies to deploy their IT infrastructure.

In Asia-Pacific, the company currently has 56 data centers located in key metropolitan areas across Australia, China, Hong Kong, India, Japan, Korea, Malaysia, and Singapore. Its global presence with 260 data centers across 71 metropolitan areas continues to support over 10,000 leading businesses worldwide.