- Numerous lessons were learned by Malaysian service providers when the two features were being constructed.
- JH1 in Johor provides obvious cost savings for Singapore companies looking to outsource tasks.
.jpg "Equinix opens two data centers in Malaysia with US$140 mil invested to date")
Equinix, a Nasdaq listed digital infrastructure company, has opened two data centers in Malaysia, one in the southern state of Johor ( JH1 ) and the central region state of Selangor, with the facility called , Kuala Lumpur (KL1 ). These carrier-neutral International Business Exchange ( IBX ) facilities form Malaysia’s digital infrastructure backbone, giving local businesses access to Equinix’s global ecosystem of over ten thousand businesses spread across 260 data centers in 71 major cities.  ,
” We strongly believe that the entry of JH1 and KL1 inaugurates a new era in Malaysia,” said Cheam Tat Inn, managing director of Equinix Malaysia. ” By providing businesses with unprecedented access to worldwide network and cutting- top systems, Equinix is poised to improve the digital environment” . , Cheam was speaking to reporters during a press journey at JH1 on Mon, 27 May.
The US$ 40 million JH1 service, which was announced in Nov 2022, is located 15km from Singapore in Nusajaya Tech Park and offers up to 500 units and 1, 800 square feet of coworking area. When fully operational, the US$$ 100 million KL1 data centre in Cyberjaya is anticipated to have 900 cabinets and 2,630 square feet of space. Both websites bring strong connection and online companies like Equinix Fabric, Cloud Router, and Internet Exchange to Malaysia, said Equinix.
While Equinix did not share prices for its two multi- client sites, also called retail collocation, a property analyst familiar with sales in the Malaysian business said the business value ranged from US$ 106.3 to US$ 117 ( RM500 to RM550 ) per watt per month.  ,
Due to the proximity of the JH1 facility to Singapore, Cheam claims that the “offloading of workloads” will be made possible because Singapore-based businesses with growing digital needs can quickly move across the border to the new data center. By tapping into Equinix’s global reach across 71 cities, Malaysian businesses can also use the site as an interconnection hub to establish digital presences all over the world.
Though Cheam did not mention it, the JH1 facility is expected to offer Singapore based companies a clear cost advantage should they move workloads to JH1, with a market study by Statista.com ( chart ) in July 2020 showing Singapore data centers charging retail colocation rates of between US$ 230 to US$ 280 ( RM1, 032 to RM1, 318 ) per kilowatt.  ,
While JH1 is anticipated to draw customers from Singapore, multinationals looking to service ASEAN markets from Malaysia are expected to use KL1. Already, Malaysian telcos like TIME and Maxis are leveraging Equinix’s Malaysian footprint, alongside firms spanning fintech, gaming, AI, and content provision.
Cheam remarked on the unavoidable impact of AI on the business, adding that” the deployment of AI use cases is clearly growing at a rapid rate.” AI’s hunger for high interconnectivity also means that,” They]customers ] are not just coming in and doing generic AI- their AI use cases span financial modeling and different industries”.
In a nod to growing concerns about the impact of the expanding data centers on the environment, both JH1 and KL1 are 100 % renewable energy as part of Equinix’s commitment to achieving its goal of becoming climate neutral by 2030, in keeping with Malaysia’s stated sustainability goals. Additionally, the facilities incorporate energy-efficient design that is compliant with international standards to improve power usage effectiveness.
Cheam also addressed the talent shortage in the construction of the highly developed facilities, not from a technological perspective, as the United States is already experiencing a talent shortage that is causing delays in data center construction. Cheam noted that” a lot of learnings went on, especially for Malaysian companies and construction firms,” pointing out that developing such cutting-edge data center facilities calls for close collaboration to develop local expertise. It’s not just about skills for operating the data centers, but helping architects, construction teams, and others understand data center design and building processes”.
To further nurture the data center talent pipeline, Equinix, with over 30 Malaysian staff at JH1 and KL1, said it plans on partnering with government agencies like MDEC, MIDA, and MITI on developing training programs. There are still no plans.
As for further expansion, Cheam said,” The immediate thing is to continue growing JH1 and KL1. Next, we’ll introduce our full line of digital services. We’re seeing strong demand for our data center services. We will be looking into new opportunities based on customer demand, just as we have done so for the last 25 years to address the growth of digital infrastructure.