The new International Business Exchange (IBX) data centre, also called JH1, is slated to begin operations in Q1 2024, providing 500 cabinets and 1,960 square metres of co-location space.

The two-storey facility will be located in Nusajaya Tech Park (NTP) in Iskandar with an option of acquiring additional land there to build a second facility.

With Equinix’s presence, Malaysian companies can accelerate their evolution from traditional to digital business, adopting hybrid multi-cloud architectures, and interconnect with more than 10,000 customers within its ecosystem.

It is reported by 2025, Malaysia’s digital economy is expected to hit RM150 billion in gross merchandise value. In the same year, it is expected to contribute 25.5% of the country’s gross domestic product (GDP).

According to Synergy Research, the Malaysian data centre market is expected to grow at a compound annual growth rate (CAGR) of almost 10% from 2021-2026, emphasising the necessity for more data centre services.

This expansion marks Equinix’s second entry into Asean after it announced plans to expand into Indonesia. When JH1 begins operations, Equinix’s total global footprint will increase to more than 245 data centres across 32 countries.

The company’s expansion is in line with the MyDIGITAL initiative launched by the Malaysian government, which aims to provide a blueprint for the country to accelerate growth of digital products and services.

Johor menteri besar Onn Hafiz Ghazi said, “While the digital economy represents a catalyst for the Malaysian economy, data centres are integral in supporting digital ecosystems and their sustained growth.”

Equinix president Jeremy Deutsch said that establishing a presence in Johor strengthens Equinix’s leadership position in Asia-Pacific as it was “one of the most markets requested by our global customers”.