Data centre players pour in investments
29 Oct 2024
Malaysia has received a further push from global technology players as it seeks to become a key regional hub for data management and digital infrastructure.
Having secured investments totalling US$16.9 billion from tech giants such as AWS, Microsoft, Google and Oracle, the domestic data centre landscape gets extra boosts from Bridge Data Centres (Bridge DC) and GDS Holdings.
Bridge DC on Monday signed a second collaboration agreement with local partner Mah Sing Group Bhd to expand Mah Sing DC Hub@Southville City with an extra 200 megawatts (MW) of power capacity.
This agreement builds on an initial partnership established in May 2024 for a 100MW development.
Earlier on Sunday, China’s data centre firm GDS International announced a RM1 billion investment and 5,000 potential job openings in Johor. This was after it signed a memorandum of understanding with five companies from China and Japan.
They were EPG Data Center Module, Longmotive, CoolTech Solution, Wasion Energy and Morimatsu Dialog.
GDS has already invested RM14.33 billion in local tech parks in Nusajaya and Kempas, both in Johor, generating over 300 jobs predominantly for Malaysians.
The new partnerships are expected to significantly expand this impact, providing ample employment opportunities and fostering economic growth in the region.
Meanwhile, Mah Sing said 36 acres, valued at around RM311 million, will be allocated for the latest Bridge DC expansion within Mah Sing DC Hub@Southville City.
Bridge DC will provide a forfeitable deposit as both parties finalise the joint venture agreement, which includes setting share ratios and completing the sale and purchase agreement for the land.
Tan Sri Leong Hoy Kum, Mah Sing’s founder and group managing director, said the collaboration aligns with the 2025 Budget emphasis on digitalisation and AI development.
“Malaysia has successfully secured investment totalling US$16.9 billion from global technology giants such as AWS, Microsoft, Google and Oracle, and the timing of this collaboration is particularly advantageous, given the growing global demand for data centres driven by the rise of AI and cloud computing,” he said in the statement.
Bridge DC, with strong financial backing, is targeting hyperscale and AI data centre customers, according to Leong.
He said Mah Sing DC Hub could play a pivotal role in establishing Malaysia as a key regional hub for data management and digital infrastructure, with the capacity to support up to 500MW.
The data centre’s first phase is expected to go live by 2026.
Leong added that the presence of Bridge DC at Mah Sing DC Hub@Southville City would likely attract more data centre operators, solidifying the hub’s position as a top regional data centre destination.
“This collaboration underscores Mah Sing’s commitment to building cutting-edge digital infrastructure. Our 30-year track record of rapid project execution makes us the ideal partner for data centre players seeking speed to market and scalability,” he said.
Mah Sing also has 42 acres of land in its Meridin East township in Johor Bahru, supporting an additional 300MW of future capacity, offering significant growth potential.
Eric Fan, chief executive officer of Bridge DC, affirmed that the partnership reflects its commitment to investing in Malaysia’s digital infrastructure as a leading regional data centre provider.
Bridge DC will oversee the design, construction, and infrastructure development to meet high-capacity clients’ specific needs, ensuring alignment with digital economy demands.
Source: NST
