US-based digital infrastructure firm Equinix, Inc. has on Monday announced an investment of MYR 23 million ($5 million) to acquire land from Cyberview Sdn Bhd in Cyberjaya to expand its data center capacity in Malaysia.

The firm said in a statement that following the launches of its International Business ExchangeTM (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.

In the rapidly growing digital landscape, it noted that Malaysia is experiencing a surge in demand for data centers across various industries.

According to the 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 compound annual growth rate (CAGR) of nearly 14 percent and reach an estimated $3.97 billion by 2029.

Located in Malaysia’s Global Tech Hub of Cyberjaya, Kuala Lumpur, the acquired land is less than one kilometer from the existing KL1 facility.

With a total area of 14,300 square meters, 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.

“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,” said Amirudin Shari, Chief Minister of Selangor, who participated in the document exchange ceremony between Equinix and Cyberview.

Cheam Tat Inn, Managing Director of Equinix Malaysia, said that 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’s unique positioning and competitive edges make it the company of choice,” he added.

Kamarul Ariffin Abdul Samad, Chief Executive Officer of Cyberview, said the digital economy contributes 23 percent to the country’s gross domestic product (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 in fostering innovation and ensuring that Cyberjaya continues to be the preferred investment location for tech companies,” he added.

Equinix currently has 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 already attracted various network, content, fintech, gaming and AI companies to deploy their informational technology (IT) infrastructure.

In Asia-Pacific, Equinix 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.

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