DE-CIX Malaysia, Digital Penang revolutionise digital connectivity: Penang IX launches as the new hub for Internet Data Exchange

• Initiative aligns with broader digital transformation strategy for Penang
• Plans to launch a new internet exchange at the Malaysia-Thailand border in 2024

DE-CIX Malaysia and Digital Penang have successfully launched the Penang IX powered by DE-CIX (PIX), an initiative aimed to reshape the digital landscape of the region. As a central hub for data exchange, PIX is set to play a pivotal role in advancing the digital transformation goals of the Penang state government, the parties said in a statement. 

The Penang IX powered by DE-CIX, in collaboration with Digital Penang, marks a significant milestone in the region's journey towards becoming a digital connectivity hub. This initiative is aligned with the broader digital transformation strategy of the Penang state government, seeking to create a conducive environment for the growth and development of the digital infrastructure.

One of the key objectives of PIX is to localise internet traffic exchange within Penang. By doing so, content providers will have the opportunity to host their content locally, resulting in lower network latency for users. This strategic move is expected to stimulate the adoption of next-generation digital applications, particularly in the fields of Internet of Things (IoT), virtual reality, and Industry 4.0. These applications, reliant on low-latency connectivity, will thrive in the Penang digital ecosystem, fostering efficient data exchange and technological advancements.

According to both parties, the launch of PIX not only strengthens the region's digital infrastructure but also holds the promise of significant economic growth. By attracting investments and fostering tech growth, PIX is poised to become a catalyst for economic development in the region. The strategic localisation of internet traffic is expected to create a ripple effect, generating opportunities for businesses and entrepreneurs to thrive in an environment conducive to innovation and connectivity.

In addition to the PIX launch, DE-CIX Malaysia has committed to further regional connectivity initiatives. The company is set to develop a new internet exchange at the border between Malaysia and Thailand, scheduled for launch in 2024. This expansion underscores DE-CIX Malaysia's dedication to advancing digital connectivity beyond Penang, contributing to the growth of the broader regional digital ecosystem.

Gobind Singh Deo, the minister of Digital said “PIX’s role as a catalyst for economic growth is particularly significant. The strategic localisation of Internet traffic is poised to attract investments and stimulate technology growth, positioning Penang as a key player in the regional digital landscape. This aligns with our national agenda to not only be digitally connected but to be at the forefront of the digital revolution.”

Meanwhile, Chow Kon Yeow, the chief minister of Penang stated “Penang IX weaves a digital tapestry that empowers our people and propels us towards a digitally advanced state in alignment with Penang2030. We aim to cultivate an environment where our innovative citizens are equipped with the necessary tools to thrive in the digital age.” 

“This initiative serves as a testament to the Penang state government’s commitment to technological progress, unlocking gateways to economic opportunities and positioning Penang as the digital hub within the region,” he added.

Wong Weng Yew, Member of the Board of Management at DE-CIX Malaysia, said, "Penang IX’s core objective is to enable Internet traffic localisation for the Penang state, which is set to improve internet performance in Penang by reducing application network latency between participating networks. This will in turn catalyse the adoption of IR4.0, VR and IoT applications, expediting the digital transformation in the state.”

"The collaboration with Digital Penang and the support from key stakeholders underscore the commitment to advancing technological infrastructure. Penang IX powered by DE-CIX is not just a hub for data exchange; it represents a gateway to innovation, economic growth, and the localisation of digital infrastructure,” said Ivo Ivanov, CEO of DE-CIX and chair of the Board of DE-CIX Group AG.

Ng Kwang Ming (pic), CEO of Digital Penang stated that the launch of Penang IX represents a significant advancement in Digital Penang’s dedication to creating a thriving digital ecosystem. 

“The enhanced connectivity and reduced latency will improve the internet user experience of all Penangites. Furthermore, it empowers local startups to fully leverage the potential of digital technologies. The reliable infrastructure is poised to furnish these startups with a resilient platform to facilitate the acceleration of their digital initiatives. This, in turn, is expected to open new avenues for growth and make a substantial contribution to Penang’s digital economy,” he added. 

The launch of Penang IX attests to the collaborative efforts of DE-CIX Malaysia and Digital Penang, setting the stage for a digital revolution that will propel the region into a new era of connectivity and innovation. For more information on how to participate, please visit www.de-cix.my.