CYBERJAYA, Aug 6, 2024 – Vantage Data Centers’ decision to expand its presence in Malaysia is a testament to the company’s confidence in the nation’s digital capabilities and future potential.
Southeast Asia, and Malaysia in particular, are attracting a growing influx of investments due to the region’s immense growth potential. Malaysia is an attractive destination due to our strategic location, favourable business environment, supportive government policies, and good connectivity, among others.
Minister of Digital, Gobind Singh Deo said the growth in the data centre market in Malaysia has experienced an expected compound annual growth rate (CAGR) of 13.92 percent from 2023 to 2029, presenting huge potential for expansion.
“This roaring demand is fueled by megatrends like cloud computing and artificial intelligence (AI) innovations, positioning Malaysia’s digital economy for a new era of high-value growth centered around technology, data, and cloud-based technologies,” said Gobind at the groundbreaking ceremony of Vantage Data Centre’s new KUL2 campus this morning.
The new campus is expected to include four data centres when completed, making it one of the largest data centre campuses in Malaysia.
Gobind added that the government is wholly committed to accelerating its digitalisation agenda and positioning itself as a leader in the digital economy, particularly in the region as Malaysia assumes the ASEAN chair next year.
“Robust and reliable digital infrastructure is recognised as a crucial component in this endeavour. A strong digital infrastructure, which supports data storage and global connectivity, will be a key enabler in economic growth and innovation.
“One shining example of Malaysia’s efforts is the 5G network helmed by Digital Nasional Berhad, an agency under the Ministry of Digital. In just under three years since its inception, Malaysia has achieved an impressive 5G coverage of over 81.8% of populated areas, with over 14.8 million 5G subscriptions and an adoption rate of 43.6%.
“By achieving widespread high-speed connectivity, Malaysia can ensure its digital infrastructure provides stable and fast connectivity nationwide, and globally. This lays the groundwork for modern data centres to establish a foothold in the country.”
He also said that Malaysia is looking forward to the finalisation of the ASEAN Digital Economy Framework Agreement (DEFA), which is forecast to unlock up to USD 2 trillion in value for the ASEAN digital economy by 2030 through harmonised trade rules and collaboration with member nations.
“Vantage Data Centers’ new campus in Cyberjaya will not only enhance Malaysia's digital infrastructure, but also provide the robust capabilities required to support the deployment of further cloud adoption and advanced AI technologies, in addition to the opportunities for entrepreneurship and job creation in Malaysia.
“The demand for AI-powered solutions has been surging in recent years. Generative AI models and applications like ChatGPT have captivated global attention. Such tools demonstrate the immense potential of AI to augment human creativity and intelligence. This growing appetite for AI capabilities in fields like finance, health, logistics and science is driving data centre operators to provide the necessary computing power, storage, and cooling to run these resource-intensive workloads.”
He added the new KUL2 campus is strategically positioned and designed to meet these needs.
“Moreover, these new facilities are designed to be energy efficient and ready to meet emerging and evolving standards for building design.
“I am confident that the KUL2 campus can serve as a hub for AI-driven innovation that will propel Malaysia's digital economy to new heights and lead the way in efficient design.
“This groundbreaking ceremony is a testament to the joint efforts of Malaysia and Vantage Data Centres to solidify the nation’s role as a hub for larger hyperscale data centres,” he added.
