China’s GDS Pumps RM1.38 Bil Onto a Hyperscale Data Centre in Iskandar Puteri

The hyper-scale data centre campus covers a net floor area of about 22,500 square metres with 54 megawatts of total IT power capacity

(From Left) Lee Ting Han, head of the Johor state committee for investment, trade, and consumer affairs, Menteri Besar of Johor, Datuk Onn Hafiz Ghazi and GDS chairman and CEO William Huang during the GDS Tech Park Data Centre Groundbreaking ceremony - Image courtesy of Lee Ting Han’s Facebook post

GDS Holdings Ltd, a leading developer and operator of high-performance data centres in China, would invest RM1.38 billion to build a hyperscale data centre campus at Nusajaya Tech Park in Iskandar Puteri.

Lee Ting Han, head of the Johor state committee for investment, trade, and consumer affairs, said the hyperscale data centre campus would have a total net floor space of around 22,500 square metres and a total IT power capacity of 54 megawatts.

Hyperscale data centres are huge business-critical facilities built to efficiently accommodate vast volumes of data, and they’re frequently associated with big data producers like Google, Microsoft, and Facebook.

GDS has a 20-year track record, with clients including hyperscale cloud service providers, large internet corporations, financial institutions, telecommunications carriers, and IT service providers.

According to a Facebook post published in conjunction with the project’s groundbreaking event, the first phase of the project is projected to be completed in early 2024.

“We see this project as a validation of Johor’s attractiveness as a top international and domestic investment destination, driven by our world-class infrastructure and business-friendly regulatory environment.

“Investments like this signal that Johor wants to be a progressive and technologically advanced state that constantly seeks added value,” said Lee Ting Han.

Meanwhile, the Malaysian Investment Development Authority (MIDA) and the Malaysia Digital Economy Corporation (MDEC) released a joint statement saying the project was the start of the Shanghai-based company’s long-term investment plan in Malaysia and Southeast Asia, which included the development of a potential Phase 2 of the Nusajaya data centre campus.

The new data centre is expected to generate 64 high-skilled jobs, according to the agencies, and will serve potential clients from China and other developing countries.

They said that GDS’s presence in Malaysia, as well as the construction of the hyperscale data centre in Nusajaya, will make a significant contribution to the digital economy’s development.

The Digital Investments Office (DIO), a collaboration platform between MIDA and MDEC, is assisting with the development of this project.

Given its strategic position, world-class infrastructure, and availability of high-skilled, multi-cultural, and multi-lingual personnel, GDS chairman and CEO William Huang believes Malaysia is the right country for the company’s regionalisation plan.

“These factors, including Nusajaya’s proximity to Johor Bahru and Singapore, will be great for existing GDS customers looking to expand in the region. We are thankful for Malaysia’s robust ecosystem in supporting our presence here,” Huang added.