KUALA
LUMPUR, Malaysia and REDWOOD CITY,
Calif., Nov. 30, 2022 /PRNewswire/ -- Equinix,
Inc. (Nasdaq: EQIX), the world's digital infrastructure
company™, today announced its market entry into Malaysia with plans to build a new
International Business ExchangeTM (IBX®) data center
located in Johor, called JH1. With
an initial investment of approximately $40
million, JH1 is scheduled to begin operations in Q1 2024,
providing 500 cabinets and 1,960 square meters of colocation
space. The world-class IBX data center will support Malaysian
companies and multinationals doing business in Malaysia with access to Platform Equinix® to
bring together and interconnect the foundational digital
infrastructure that powers their success.
Malaysia's digital economy is
forecast to reach $34 billion in
Gross Merchandise Value by 2025,1 with the country on
course to achieve a digital economy contribution to Gross Domestic
Product of at least 25.5% the same year.2 Equinix's
expansion in Malaysia will unlock
opportunities for Malaysian businesses expanding internationally
and for multinational corporations pursuing growth and innovation
in the Malaysian market. Malaysian companies will benefit from the
ability to accelerate their evolution from traditional to digital
businesses by rapidly scaling their infrastructure, easily adopting
hybrid multicloud architectures and interconnecting with strategic
business partners within the Platform Equinix ecosystem of more
than 10,000 customers.
Equinix's expansion in Malaysia
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. Datuk Onn Hafiz Ghazi, Chief Minister of
Johor, said: "While the
digital economy represents a catalyst for the Malaysian economy,
data centers are integral in supporting digital ecosystems and
their sustained growth. We welcome this investment by Equinix,
along with the global expertise they bring to Johor, as well as the rich digital experiences
and outcomes that will benefit this state and the country. We are
looking forward to working together, in transforming Malaysia into a digitally driven, high-income
nation at the forefront of this region's digital economy."
This expansion marks Equinix's second foray into ASEAN (the
Association of Southeast Asian Nations) following the recently
announced plans to expand into Indonesia, allowing the company to address
digital infrastructure demand critical to the region's digital
growth. Jeremy Deutsch, President,
Asia-Pacific, Equinix, commented: "Establishing
a presence in Johor strengthens
Equinix's leadership position in Asia-Pacific within a strategic market such as
Malaysia, one of the most
requested markets in Asia-Pacific
by our global customers. I would like to express our gratitude to
the Digital Investment Office (DIO), Invest Johor, and Tenaga
Nasional Berhad (TNB) for their assistance and support. We look
forward to deepening our collaboration through future expansion,
maximizing local businesses' digital growth potential with rich
digital experiences and outcomes."
Highlights / Key Facts
- JH1, a two-story facility, will be located at Nusajaya Tech
Park (NTP) in Iskandar, Johor. It
is 15 kilometers from Singapore,
allowing the data center to address excess demand from
organizations in the city-state in addition to Malaysian domestic
demand.
- Equinix also has the option of acquiring additional land in NTP
to build a second facility, supporting Malaysia's digital growth aspirations.
Companies and multinationals doing business in Malaysia will be able to access Platform
Equinix to store and distribute large volumes of latency-sensitive
data and applications closer to end users and local markets.
- Today, Malaysia is one of the
top three colocation markets in ASEAN, with momentum driven by
growing demand and investment from hyperscalers and cloud service
providers, as well as national policies favorable for digital
growth. According to Synergy Research, the Malaysia data center market is expected to
grow at a compound annual growth rate (CAGR) of nearly 10% during
2021–2026.3 This shows the need for increased
digital services and data center services capacity in Malaysia.
- As indicated in the Global Interconnection Index (GXI) 2023,
organizations are connecting to three times as many business
ecosystem partners and metros, consuming more than twice the amount
of interconnection bandwidth on average in the past five quarters
than in the previous five years. Organizations need access to
ecosystems comprising network companies, cloud and system
integrator companies, and enterprise customers who can take
advantage of a full platform service across a global footprint. The
Johor data center will provide
organizations with access to vibrant ecosystems made up of more
than 2,100 networks and over 3,000 cloud, IT and system integrator
services that Equinix works with globally.
- When opened, the new IBX data center in Johor will increase Equinix's total global
footprint of more than 245 data centers across 71 metros and 32
countries, providing Equinix's 10,000+ customers more ways to
securely deploy, directly connect and effectively scale their
digital infrastructure in a rapidly growing economy. It is expected
to also present opportunities for further expansion into new metros
and market segments in Malaysia.
- In Asia-Pacific, Equinix
currently has 51 data centers across 13 metros across Australia, China, Hong
Kong, India, Japan, Korea and Singapore. In addition, Equinix also announced
expansions into Chennai in
India, and Jakarta in Indonesia in 2022, strengthening its market
leadership in the region.
Additional Quote
Ts. Mahadhir Aziz, CEO of Malaysia Digital Economy
Corporation (MDEC), Malaysia's
lead digital economy agency
"We welcome Equinix's investment
via the JH1 data center and we are proud to have facilitated their
market entry into Malaysia. This
new upcoming facility will enhance Malaysia's capabilities and further strengthen
the country's digital infrastructure backbone, in line with the new
national strategic initiative, Malaysia Digital. MDEC will strive
to facilitate further effective collaborations in our bid to firmly
establish the nation as the digital hub of ASEAN."
Supporting Resources
- Equinix Expands to Indonesia
with $74M Data Center Investment
[press release]
- Equinix Invests Over $86 Million
to Build Its Third Data Center in Mumbai [press release]
- Equinix Invests Over US$9 Million
to Acquire Land in Chennai for
Expansion [press release]
About Equinix
Equinix (Nasdaq: EQIX) is the
world's digital infrastructure company. Digital leaders harness
Equinix's trusted platform to bring together and interconnect
foundational infrastructure at software speed. Equinix enables
organizations to access all the right places, partners and
possibilities to scale with agility, speed the launch of digital
services, deliver world-class experiences and multiply their value,
while supporting their sustainability goals.
Forward Looking Statements
This press release
contains forward-looking statements that involve risks and
uncertainties. Actual results may differ materially from
expectations discussed in such forward-looking statements. Factors
that might cause such differences include, but are not limited to,
risks to our business and operating results related to the COVID-19
pandemic; the current inflationary environment; foreign currency
exchange rate fluctuations; increased costs to procure power and
the general volatility in the global energy market; the challenges
of acquiring, operating and constructing IBX and xScale®
data centers and developing, deploying and delivering Equinix
products and solutions; unanticipated costs or difficulties
relating to the integration of companies we have acquired or will
acquire into Equinix; a failure to receive significant revenues
from customers in recently built out or acquired data centers;
failure to complete any financing arrangements contemplated from
time to time; competition from existing and new competitors; the
ability to generate sufficient cash flow or otherwise obtain funds
to repay new or outstanding indebtedness; the loss or decline in
business from our key customers; risks related to our taxation as a
REIT and other risks described from time to time in Equinix filings
with the Securities and Exchange Commission. In particular, see
recent and upcoming Equinix quarterly and annual reports filed with
the Securities and Exchange Commission, copies of which are
available upon request from Equinix. Equinix does not assume any
obligation to update the forward-looking information contained in
this press release.
1 https://economysea.withgoogle.com/home/
2
https://www.mida.gov.my/mida-news/digital-economy-able-to-contribute-25-5pc-towards-malaysias-gdp-by-2025/
3 Synergy Research Group, Colocation Forecast, Mar,
2022
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SOURCE Equinix, Inc.