October 27, 2020

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Building data capacity in Malaysia

The Malaysian branch of a Japanese multinational system integration company announced that it surging ahead with plans to expand data centre capabilities across the Asia Pacific and the wider world, with enhancements in Malaysia and Indonesia now months away.

In Malaysia, the company is currently constructing a fifth data centre at its Cyberjaya campus, located 30km away from the centre of Kuala Lumpur. The new Cyberjaya 5 facility will house 5.6 MW of “critical IT load” and will come online during the fourth quarter of 2020 to meet the requirements of hyper-scalers and high-end enterprise customers.

Meanwhile, the firm’s new campus in Indonesia will be capable of 45 MW of critical IT load once fully developed. Under the banner of Indonesia Jakarta 3 Data Centre, the new facility is expected to become the largest data centre in Indonesia with plans in place to open during the first half of 2021.

In addition to Southeast Asia, new data centre capabilities will also be launched in India, Japan, the UK, Germany and the USA, providing over 400 megawatts (MW) of IT load upon completion.

The Senior Executive Vice President of Services at the firm stated that nowadays, organisations demand an ever-expanding global platform to reach their growing digital business objectives. Hence, the firm continues to expand its portfolio of the best data centres in new and existing markets that complement its global geographic footprint.

Customers will have access to full-stack technology solutions, spanning data centre, network, voice and video infrastructure and managed services. The global system integrator (GSI) has also committed to following sustainable best practices ‘where possible’.

The new data centres will be set up for clients to use renewable energy if they choose, as the firm invests in a sustainable future for the planet. The data centres are strategically located to support interconnected ecosystems around the world’s most important business and government hubs and will include the latest data centre technology for security, reliability, and energy efficiency.

The firm will leverage its deep construction expertise and the strength of its capital resources to extend their line of data centre facilities – with more to come, the Executive Vice President of Global Data Centres at the firm.

According to another article, a wholly-owned subsidiary of a local engineering services company accepted a letter of award from Future Digital Data Systems LLC (FDDS) to build a data centre for about RM1.47 billion.

Malaysia’s data centre market expected to expand

Malaysia’s data centre market size is likely to reach revenues of over $800 million by 2025. Malaysia is also expected to gain increased traction for data centre investments owing to the land shortage faced by Singapore to facilitate greenfield developments.

The expansion by hyperscale across other Southeast Asian countries is likely to lead to an increase in investments in Malaysia. Over 80% of the population has access to the Internet, the data traffic in Malaysia Internet Exchange is around 35 Gbps per day, which is expected to grow at about 5-10% YOY between 2020 and 2025.

The Malaysian government has planned to generate 20% renewable energy by 2025. To achieve the target, an $8 billion investment is required for the renewable energy sector from the public-private partnerships and private financing. The increase in digital transformation initiatives by enterprise verticals will aid the growth of PaaS and IaaS providers, thereby boosting the market growth.

Several Malaysian and Chinese enterprises have planned to establish an Artificial Intelligence park at a cost of $1 billion. The aim is to build a commercial AI ecosystem, increase artificial intelligence talent, and grow AI-related research initiatives in Malaysia.

The Malaysia national industry 4.0 framework has designated initiative programs to adopt IoT, sensor technology, artificial intelligence/machine learning (AI/ML), mobile connectivity, robotics, and 3-D printing.

Infrastructure projects such as the National Fiberisation and Connectivity Plan (NFCP) are to be implemented by the government to improve inland connectivity across Malaysia in the next five years. Big data analytics digital lab has helped the government to map public health patterns and improve safety and convenience in transportation facilities.