Green Packet to invest initial RM100m under Tencent Cloud partnership to set up data centre in Malaysia

Green Packet to invest initial RM100m under Tencent Cloud partnership to set up data centre in Malaysia

18 Aug 2020

Green Packet Bhd will be investing an initial RM100 million under its collaboration with Tencent Cloud to set up a joint Internet data centre in Malaysia.

Green Packet group managing director CC Puan said the initial investment will comprise the setting up of infrastructure, including a total of 600 servers, as well as the provision of software solutions.

The exclusive collaboration between the two parties will be for a period of eight years, plus an additional two years, starting today.

“For the initial phase, it will be 600 servers, and this will grow based on demand going forward. We strongly believe that over the next four to five years, we will be investing in more than 3,000 to 4,000 servers,” he said during a press conference today.

Puan added that total investment in this collaboration could add up to RM300 million to RM500 million over the next three years.

It will take about six months before the cloud computing infrastructure is fully commissioned, he said, expecting the operations to go live in the first quarter of 2021 (1Q21).

In terms of contribution, Puan said Green Packet will only see significant contributions from 2022, potentially contributing 30% to 40% of the company’s bottom line.

He further explained that, under the agreement, Green Packet will be responsible for the setting up of the infrastructure in Malaysia, while Tencent Cloud will be providing the actual service.

The collaboration comes with a joint revenue model, added Puan.

KiplePay to leverage the new infrastructure

Meanwhile, Kiplepay Sdn Bhd (KiplePay), a subsidiary of Green Packet, will be able to leverage the new infrastructure to bring into Malaysia and localise services that Tencent Cloud already offers.

“For example, we can do fintech services or payment services, which is the first step towards providing banking services. Any business with a large enough community can essentially get into the payment business, utilising our banking-as-a-service platform,” said KiplePay chief executive officer (CEO) Tan Kay Yen.

The press conference was held following the signing of a collaboration agreement between Puan and Tencent Cloud vice-president Flying Wu, witnessed by Science, Technology and Innovation Minister Khairy Jamaluddin.

Source: The Edge Markets