APPD Market Report Article
Kuala LumpurMarch 16, 2023
Yulia Nikulicheva, Head of Research & Consultancy, Malaysia
Upgrades and developments attracting foreign investments in DC
- Phase one of the Sarawak International Internet Gateway involves the Batam-Sarawak Internet Cable System (BaSICS) and IRIS’s own Tier IV DC – improving Borneo’s internet access and ultimately linking Indonesia and Malaysia.
- Tenaga Nasional Bhd (TNB) has fast-tracked upgrading works at the existing Sedenak main intake substation (PMU) with expectations for it to be a catalyst in the development of the 7,290-acre Sedenak Technology Park, of which Sedenak Tech Park (STeP) is a key component.
Entrance and expansions fueling the supply growth pace
- Malaysia will be doubling its capacity to approximately 422MW by 2025, upon the completion of ongoing data centre projects, putting the nation in close reach of its forecasted growth.
- Sedenak Tech Park (STeP) welcomed Bridge Data Centres’ (BDC) phase one of a 100 MW hyperscale data centre spanning across 40 acres, and the MOU signing between JL and Group Sdn Bhd (JLG) and Mitsui & Co (Malaysia) Sdn Bhd to develop a hyperscale data centre.
MyDIGITAL initiative develops Malaysia as an upcoming data hub
- Launched in July 2022, Malaysia Digital is a new framework designed to accelerate the nation’s digital economy growth, succeeding the previous MSC Malaysia.
- Of the total approved investments in the information and communications sub-sector from January to September 2022, MYR 60.7 billion (87.7%) came from five ICT services, including three data centre projects by Bridge Data Centres Malaysia III Sdn Bhd, Byte Dance Sdn Bhd, and YTL Power International Bhd.
Outlook: Local and foreign players to elevate DC growth pace
- The nation’s data centre industry is expected to touch 500MW by 2025, cementing Malaysia’s position as one of the regional data centre hubs.
- Cyberjaya will continue to grow as the preferred data centre location within Greater Kuala Lumpur; Phase 2 of Sedenak Tech Park (STeP) anchors interest in Johor with further potential growing in Iskandar Puteri as the state’s next DC hotspot.