In a move to meet the growing demand for data centers, Equinix, Inc., a leading digital infrastructure company, announced a US$5 million (RM23 million) investment to acquire land from Cyberview Sdn Bhd in Cyberjaya, Malaysia. This acquisition will expand Equinix's data center capacity in the region, following the successful launches of its International Business Exchange™ (IBX®) data centers in Kuala Lumpur (KL1) and Johor (JH1).
Malaysia's data center market is rapidly growing, driven by its strategic location, supportive government policies, and increasing demand for digital infrastructure. As Southeast Asia emerges as a hub for digital transformation, Malaysia is positioning itself as a key player in the region’s digital economy. The market is expected to grow at a compound annual growth rate (CAGR) of nearly 14%, reaching an estimated US$3.97 billion (RM18.4 billion) by 2029.
The newly acquired land in Cyberjaya, located less than a kilometer from the existing KL1 facility, spans 14,300 square meters. This expansion will enable Equinix to enhance its ecosystem in Malaysia, catering to a diverse range of network and cloud service providers, as well as enterprises across various industries.
During the document exchange ceremony, Amirudin Shari, Chief Minister of Selangor, emphasized the importance of data centers in the digital economy. “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 will significantly contribute to the adoption of cloud technology by Malaysian companies", he said.
Cheam Tat Inn, Managing Director of Equinix Malaysia, highlighted the increasing demand for secure and scalable data center services in Malaysia. “With 96.8% of the population actively engaging in digital activities, businesses are seeking access to digital ecosystems to meet the demands of this tech-savvy consumer base. Equinix's unique positioning makes it the company of choice,” he stated.
Kamarul Ariffin Abdul Samad, CEO of Cyberview, noted Cyberjaya’s pivotal role in Malaysia’s digital economy. “The digital economy contributes 23% to the country’s GDP. Cyberjaya, with the highest concentration of tech companies in Malaysia, continues to be the preferred investment location for tech companies”, he said.
Equinix currently operates two data centers in Malaysia, JH1 and KL1. JH1 offers 500 cabinets and 1,960 square meters of colocation space, while KL1 will provide 900 cabinets and 2,630 square meters of colocation space once fully built. These facilities have attracted various network, content, fintech, gaming, and AI companies.
In the Asia-Pacific region, Equinix operates 56 data centers in key metropolitan areas across Australia, China, Hong Kong, India, Japan, Korea, Malaysia, and Singapore. Globally, Equinix supports over 10,000 leading businesses with 260 data centers across 71 metropolitan areas.