Cyberjaya’s ideal location attracts data centre investments
09 Sep 2024
The development of tech hubs and data centres is closely intertwined, with each driving and benefiting from the growth and advancement of the other. This is because tech hubs provide a fertile environment for innovation and business development, and data centres supply the essential infrastructure to support the growth of the digital economy.
Tech hubs greatly benefit from the presence of data centres — by leveraging the robust and scalable infrastructure that data centres offer — to drive innovation and sustain tech development. Both sides of the coin contribute to a shared goal of economic prosperity, technological innovation and sustainable development.
Data centre companies are turning to Cyberjaya for its world-class infrastructure and established tech ecosystem, effectively supporting their operations in Malaysia. In the past year alone, Cyberjaya has welcomed major data centre players, including hyperscale providers such as EdgeConneX, Equinix and Vantage Data Centres. Vantage has started construction on its second campus with a planned investment of US$3 billion.
Moreover, key players such as NTT and Bridge Data Centre, which has already been established in the city, have also expanded their footprints with new campuses last year.
The influx of data centre players underscores Cyberjaya’s growing prominence as an ideal location for operations of these facilities.
“Purpose-driven to support Malaysia’s tech development, Cyberjaya is the best location when it comes to world-class ready infra. Cyberview acknowledges that the needs and demands of the tech industry are certainly evolving and increasing, especially with participation by global tech giants,” says Kamarul Ariffin Abdul Samad, CEO of Cyberview Sdn Bhd, the tech hub developer of Cyberjaya.
“Working via a collaborative framework with key partners and government agencies at both the federal and state levels has enabled us to be nimble and agile in offering innovative solutions to scale our infrastructure and manage our resources better.”
As a global tech hub, Cyberjaya’s advantages include its dark fibre connectivity, which ensures uninterrupted bandwidth by allowing companies to manage their network infrastructure and providing consistent and reliable data transmission speed.
This reliability is crucial for data centre companies, especially in the context of the high demand driven by artificial intelligence (AI) and other data-intensive applications.
“The increasing demand for AI, cloud computing, big data analytics and other digital services and e-commerce has driven the need for advanced data infrastructure. To meet the needs of our investors, Cyberjaya offers an expansive land bank, robust infrastructure and redundant power supply,” says Kamarul.
“This positions the city as a prime location for international and local data centre players looking to establish and expand in Malaysia and the region.”
Ushering in the digital economy
The digital economy stands as a powerful force for transformation with the potential to reshape entire industries, fuel groundbreaking innovations and open up vast new opportunities on a global scale.
Malaysia is experiencing remarkable growth in digital investments, which has reached RM66.2 billion in the first half of the year, according to the Ministry of Digital. As businesses increasingly rely on digital infrastructure to drive growth, the demand for data centres is expected to rise.
The increase in the number of data centres in Cyberjaya is a direct outcome of the expanding digital economy.
“As a global tech hub and preferred destination for data centres, Cyberjaya and its offerings will benefit not only the data centre industry but also extend to the broader digital economy,” says Kamarul.
There is more to data centre offerings than just infrastructure. For one, data centres play a pivotal role in advancing the government’s Madani Economy framework, which aims to secure Malaysia’s economic future by prioritising digitalisation and embracing sophisticated economic activities through innovation and technology.
Data centres also drive the expansion of ancillary industries such as cybersecurity, network infrastructure and IT services by strengthening domestic supply chain linkages. These are vital to the broader economic ecosystem.
For small and medium enterprises (SMEs), data centres offer significant benefits through colocation services. This allows SMEs to rent space in a data centre to house their servers and IT equipment, rather than maintaining their own infrastructure.
“SMEs pay only for the space and resources they use, reducing capital expenditure and operational costs and making advanced IT infrastructure more accessible. Accessibility of IT enhances connectivity and collaboration, which fosters an interconnected and competitive business environment, contributing to the overall expansion and resilience of our digital economy,” says Kamarul.
On the other hand, he says, tech hubs such as Cyberjaya are essential to attracting these tech companies, which include foreign direct investments to the country. These new tech investments create job opportunities, foster a skilled workforce and promote local employment — all this while generating economic activities and growth, from the earliest stages of construction to having spillover impact in the greater community and across industries.
Getting ready for digital transformation
Data centre investments directly create jobs requiring specific expertise. These include IT engineers, data scientists, big data analysts and cybersecurity engineers.
This is why focusing on talent development to ensure local communities benefit from jobs created in these sectors is essential, notes Kamarul. This is done by preparing local talent to be industry-ready and fostering the growth of more tech creators in Malaysia.
It also supports indirect jobs, which results from data centre operators acquiring services such as equipment suppliers, construction workers and engineers.
Tech hubs such as Cyberjaya are ideal for aligning local talent and skills with Malaysia’s expanding digital economy, says Kamarul. Tech hubs function as innovation ecosystems that bring together educational institutions, industry leaders and government initiatives to foster growth and development.
For instance, companies and educational institutions are partnering for internship placements, industry exposure and mentoring. These programmes provide hands-on experience and enhance job readiness by aligning academic programmes with industry needs.
Meanwhile, educational institutions can implement educational programmes and vocational courses that are closely aligned with the skills and qualifications required by local industries, says Kamarul. These programmes can then be regularly updated based on industry trends and feedback to ensure relevance.
“Essentially, jobs created within tech sectors and the creation of local innovators are the building blocks of a future economy driven by digitalisation and technology. This aspiration must begin with fostering a passion for science, technology, engineering and mathematics among Malaysian students from an early age,” says Kamarul.
This is why Cyberjaya is heavily investing in technology transfers, knowledge sharing and collaborations with institutes of higher learning (IHLs) and industry players. Cyberjaya is home to eight IHLs that supply talent to the tech sector.
Moreover, the Cyberview Living Lab Talent provides incentives on hiring the right talent and fostering industry-academia collaboration to encourage two-way communication that improves the employability of graduates.
A key zone in Cyberjaya is West Cyberjaya, which serves as a centre for industry-academia collaboration to produce skilled talent.
“Our ongoing partnership with Multimedia University has been instrumental in bolstering Cyberjaya’s talent supply. With at least two more institutions expected to establish themselves in Cyberjaya within the coming months, the tech sector should experience a stronger supply of both core and non-core talent,” says Kamarul.
The infrastructure and connectivity of data centres will create mutilfold benefits in scaling up innovation and tech ecosystems, he says. Further collaboration with local start-ups, SMEs, research institutions and industry leaders will make it possible to stay ahead of trends, to enhance efficiency and create new value propositions.
“As part of our global tech hub proposition, we are focused on developing a tech ecosystem in Cyberjaya that includes building capacity in emerging technologies, research, development and commercialisation,” says Kamarul.
“Embracing emerging technologies, investing in R&D and nurturing a culture of continuous improvement will enable tech hubs to optimise and leverage the presence of data centres in order to thrive in today’s digital era.”
In this stead, Cyberjaya is a sandbox for emerging tech companies via the Cyberview Living Lab Accelerator (CLLA) programme, whose aim is to identify, enhance and encourage the growth of start-ups and accelerate their ideas through mentorships while providing a platform to test and validate solutions.
Since its inception in 2013, the CLLA programme has helped start-ups raise more than RM255 million in total investments and more than RM792 million in cumulative revenue. These local start-ups have had a collective impact on the economy by creating more than 1,450 jobs.
Today, Cyberjaya is home to more than 40,000 knowledge workers and 28,000 students that form a pool of skilled, diverse and vibrant talent in technology and innovation.
Keeping it sustainable and green
As tech and data centre investments continue to grow, it is critical to address concerns related to increasing emissions and resource consumption, notes Kamarul. It is projected that power demand from data centres will surge 160% by 2030, which highlights the urgent need for a robust and sustainable energy infrastructure.
An ESG framework and a five-year roadmap are in place to help and ensure that Cyberjaya is a smart, carbon-neutral city by 2030. Already well in place are centralised cooling facilities managed through Pendinginan Megajana Sdn Bhd, which uses chilled water to reduce emissions. This currently benefits more than 45 buildings and cuts 7,000 tonnes of emissions annually.
“We are exploring further opportunities with potential partners to enhance our use of solar and renewable energy for data centres in Cyberjaya. This includes evaluating the feasibility of renewable power options through the enhanced corporate green power programme and third-party access,” says Kamarul.
“These efforts aim to support the transition to a low-carbon future, ensuring that the tech hub’s growth aligns with environmental goals while maintaining its economic and innovative potential.”
He adds data centres are at the forefront of innovation in sustainability and are adopting greener technologies and practices to minimise their environmental footprint.
Moreover, key players are exploring seawater cooling and reusing wastewater as part of their innovative water conservation strategies. This presents an opportunity for Cyberjaya to benefit from sustainable tech development.
In the long run, the growth of data centres in a tech hub certainly brings significant economic benefits as Malaysia focuses on the digital economy.
“Cyberview is looking into the horizon and understands that other tech investments must also be present here to create a balanced growth environment. Ultimately, the priority is always on curating an innovative landscape that will benefit all, especially the community and Malaysians at large,” says Kamarul.
Source: The Edge Malaysia
