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Johor’s New Hyperscale Data Centre Campus

Image Credits: MDEC, Press Release

A leading developer and operator of high-performance data centres in China announced the start of construction of its hyperscale data centre campus in Nusajaya, Johor. The development of this project is supported by the Digital Investments Office (DIO), a collaborative platform between Malaysia Digital Economy Corporation (MDEC) and the Malaysian Investment Development Authority (MIDA).

In line with the DIO’s role to ease investors’ journey in Malaysia by combining MIDA’s global presence and MDEC’s subject matter expertise in the digital economy ecosystem, the DIO has been working closely with GDS Holdings to facilitate its Request for Information (RFI) during the planning phase of the project, as well as providing support to ensure smooth implementation of the overall project in Malaysia.

According to the CEO of MDEC, the data centre operator’s presence in Malaysia and the construction of the hyperscale data centre will have a great positive effect on the development of Malaysia’s digital economy.

He noted that the new centre signifies Malaysia’s competitive advantage in attracting data centre investments, in line with our aspirations under the Malaysia Digital initiative. It also brings with it the world-class infrastructure capabilities that will further strengthen Malaysia as the digital hub of ASEAN.

The MDEC CEO also thanked Invest Johor and the Johor State Economic Planning Division (BPENJ) for their support and assistance with this project. Building a thriving digital economy and infrastructure takes an entire nation – MDEC will continue driving more collaborations to further develop the country’s burgeoning data centre industry, he added.

The Deputy Chief Executive Officer (DCEO), Investment Development, MIDA, similarly commended the company’s investment in the country. She noted that data centres are a key infrastructure enabler to transform Malaysia into an advanced digital nation, paving the way for modern businesses.

She added that MIDA, through the Digital Investment Office will continue our efforts in transforming new and existing economic clusters and facilitating strategic investment partners like GDS Holdings, as digital enablers to create high-income jobs and encourage digital upskilling of the local workforce and businesses.

Meanwhile, the Menteri Besar of Johor stated that the project will catalyse Johor and Malaysia to emerge as a hub for data centres as well as stimulate the development of clusters of local public computing services companies. The data centre will also help with job creation, a key priority of the state.

The entry of the data centre operator and its hyperscale data centre to Johor is very welcomed and timely. The local government sees this as a validation of the state’s attractiveness as a top international and domestic investment destination. This, in turn, is driven by its world-class infrastructure and lifestyle offerings, as well as the state’s enduring stability. It is hoped that this will be the first of many such investments and projects here.

The Chairman and CEO of the data centre operator said that Malaysia is the ideal nation for the major step of the company’s regionalisation plan, thanks to its strategic location, world-class infrastructure, and access to high-skilled, multi-cultural and multi-lingual talent.

He noted that these factors, including Nusajaya’s proximity to Johor Bahru and Singapore, will be great for the company’s existing customers looking to expand in the region.

The ground-breaking ceremony that was held in Nusajaya, Johor on 24 April 2022 kickstarts Phase 1 of the operator’s hyperscale data centre campus, which is expected to be completed by 2024. This marks the beginning of the Shanghai-headquartered company’s long-term investment plan in Malaysia and Southeast Asia and includes the development of a potential Phase 2 of the Nusajaya data centre campus.

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