As Malaysia solidifies its position as a key regional hub for digital interconnection among businesses, Equinix, Inc. is set to inaugurate its first data centre in Kuala Lumpur in Q1 2024. This marks the second centre following last year's expansion announcement, which introduced Equinix to Malaysia with a data centre in Johor. Fuelled by robust cloud growth, increasing e-commerce adoption, and ongoing investments in 5G, Malaysia stands out as one of the fastest-growing data centre markets in the ASEAN region, particularly in Johor and Kuala Lumpur. The expansion by Equinix is poised to enhance digital infrastructure capacity in Malaysia, addressing the escalating demand from both local and global companies expanding their operations in the country.

In its attempt to embark on Phase 2 of Malaysia’s MyDIGITAL initiative for a digital economy, the demand for digital infrastructure is anticipated to remain strong. According to Synergy Research, Malaysia currently holds the position as the third-largest data centre colocation market in the ASEAN region and is projected to achieve a Compound Annual Growth Rate (CAGR) of approximately 11% from 2022 to 2027. Drawing on extensive global experience in supporting 5G development, Equinix's new facility aims to accelerate the realisation of the government's MyDIGITAL initiative, positioning Malaysia as a central hub for colocation in ASEAN and a regional powerhouse in the digital economy. The upcoming KL1 facility in Kuala Lumpur, coupled with the recently announced JH1 in Johor, will offer essential digital infrastructure, empowering businesses to capitalise on the opportunities presented by Malaysia's burgeoning digital economy.

Simultaneously, Equinix has revealed the immediate appointment of Cheam Tat Inn as the Managing Director for Equinix Malaysia. In this capacity, Cheam will spearhead Equinix's expansion and growth initiatives in Malaysia, with direct reporting to Jeremy Deutsch, Equinix Asia Pacific President, as stated by Cyrus Adaggra, Vice President, Corporate Development & Strategy, Asia Pacific for Equinix.

Cyrus Adaggra, Vice President, Corporate Development & Strategy, Asia Pacific for Equinix

A separate statement from the company highlighted Cheam's extensive three-decade-long experience in the information technology industry, where he has held pivotal leadership positions at renowned technology companies.

Behind Equinix's Selection Process for Johor and Cyberjaya

Cyrus also explained the factors guiding the selection of Johor and Cyberjaya for Equinix's new data centres, emphasising their significant contributions to the overall connectivity and accessibility of Equinix's services.

Cyrus highlighted Johor as a strategic choice driven by heightened demand from entities seeking expansion from Singapore. In his own words, "Johor will just be a complement to Singapore, not to replace it." This underscores the synergistic relationship between the two locations, positioning Johor as a supplementary hub to meet the increasing needs of businesses looking to extend their presence beyond Singapore.

In the case of Cyberjaya, Cyrus pointed to its appeal for a diverse range of entities, including multinationals and local enterprises, that are keen to establish their operations in Malaysia. This choice aligns with Equinix's commitment to providing a robust and accessible infrastructure to support the evolving demands of businesses across various sectors.

Moreover, he highlighted a crucial aspect of the decision-making process – the ability to source renewable energy in Malaysia. This factor reflects Equinix's commitment to sustainability and environmentally friendly practices. By tapping into Malaysia's capacity for renewable energy, Equinix not only addresses the growing demand for data services but also contributes to a greener and more sustainable digital infrastructure.

Equinix's selection of Johor and Cyberjaya is strategically driven by the specific demands of businesses in the region, with Johor complementing Singapore's role and Cyberjaya catering to a diverse array of enterprises. The emphasis on sourcing renewable energy further underscores Equinix's dedication to environmental sustainability in its operations.

Addressing Skills Shortage

With its entry into the Malaysian market and anticipated operations commencing in 2024, Equinix has initiated the talent acquisition process for staffing the upcoming data centre.

Cheam expressed optimism about Equinix's role in supporting Malaysia's digital aspirations and expanding its presence in the country. As more data centres emerge in Malaysia, concerns have arisen regarding the availability of a qualified workforce to fill the new roles within these facilities. The global tech industry is grappling with a significant talent shortage, with data centre expertise being particularly sought after.

Cheam Tat Inn, Managing Director for Equinix Malaysia

According to Ts. Mahadhir Aziz, CEO of MDEC, skill development in Malaysia is aligned with the talent demand, and investors consider the available talent pool before making investments in the country. Addressing potential talent shortages, initiatives led by MDEC and the government involve direct collaboration with universities and corporations to cultivate the necessary skills, ensuring a seamless transition of talent into employment.

Ts. Mahadhir Aziz, CEO of MDEC

Aziz emphasised the importance of knowledge workers training future operating teams, especially for newly established businesses and infrastructures in the country. MDEC is committed to facilitating immediate requirements in this regard. While acknowledging the global skills and talent shortage, Cyrus asserted that these challenges would not hinder Equinix's progress, expressing confidence that Malaysia will address these gaps in the future.

Simultaneously, Aziz highlighted the societal impact of the increasing number of data centres in Malaysia, emphasising the need to assess how these investments will contribute to local solutions that can serve as a springboard to other markets.