Vantage Data Centers plans additional US$3 billion investment into Cyberjaya

The Malaysian data center market continues to see investments pouring in. In 2023 alone, the country has already witnessed several tech companies announce plans to build data centers in Malaysia. While some companies are expanding their presence in the country, there have also been several new players entering the industry in Malaysia.

As such, US-based hyperscale data center provider Vantage Data Centers announced plans to double its commitment in Cyberjaya with a planned investment of an additional US$3 billion to build a second data center campus, solidifying the city’s position as the top location in Malaysia for data center investors.

Vantage signed an agreement with Cyberview, the tech hub developer of Cyberjaya, to formalize the investment. Vantage Data Centers powers, cools, protects and connects the technology of the world’s well-known hyperscalers, cloud providers and large enterprises. Developing and operating across five continents in North America, EMEA and Asia Pacific, Vantage has evolved data center design in innovative ways to deliver dramatic gains in reliability, efficiency and sustainability in flexible environments that can scale as quickly as the market demands.

In Malaysia, Vantage is in its final stages of acquiring 35 acres to develop a data center mega campus, named KUL2, which will consist of 10 data centers with 256MW of IT capacity across 2.75 million square feet once fully developed. The company is also expanding its first campus with a fourth 16MW facility that is currently under development. Combined, both campuses will deliver a total of 287MW of IT capacity to meet the demands of hyperscalers, cloud providers and large enterprises.

“Vantage has been expanding our footprint in Malaysia since we entered into the dynamic Asia-Pacific market. Our positive experience in Cyberjaya has encouraged us to take further steps to advance the city’s digital infrastructure by building our largest hyperscale campus in the region,” said Giles Proctor, Chief Operating Officer of Vantage’s APAC business.

As part of its ongoing efforts to enhance the technology and innovation ecosystem in Cyberjaya, Cyberview also signed a Memorandum of Understanding (MoU) with Leave a Nest Malaysia (LVNS), a subsidiary of a Japan-based science venture company.

With support from Cyberview and 18 local players, including MNCs from various sectors and government agencies, LVNS aims to generate RM100 million in economic impact through its development programs. It will include several signature initiatives in Cyberjaya, such as the Center of Garage Malaysia, a knowledge-based tech development initiative that is aimed at supporting startups in Malaysia as well as the region.

Both signing ceremonies were witnessed by Fahmi bin Fadzil, Minister of Communications and Digital. The minister said with Cyberjaya leading the way as a top choice for data center investments in the country, Malaysia’s tech industry is set for a bright future.

“As demand for connectivity and digital services continues to rise, data centers will play an increasingly critical role in powering our digital economy. In addition to strong infrastructure, a thriving ecosystem of innovation will be a key enabler of growth in this rapidly evolving industry,” added the minister.

For Dr. Mohd Hafiz bin Ibrahim, Acting Managing Director of Cyberview, the agreement with Vantage marks an important milestone for Cyberjaya and sets the stage for the city as an ideal location for hyperscale data center providers. Currently, 90% of colocation providers in Malaysia are based in Cyberjaya, leveraging its world-class infrastructure with dark fiber connectivity.

“In addition to enhancing Cyberjaya’s infrastructure, our collaboration with Leave a Nest Malaysia will also reinforce the culture of innovation that we are fostering in the city. This partnership will not only benefit the startup community but will also contribute to the growth and development of the entire technology and innovation ecosystem. Guided by the Cyberjaya master plan, we are committed to further enhancing the city’s infrastructure to meet the growing demands of hyperscale data center players and the wider tech sector,” he added.

The Digital Investment Office by the Malaysia Digital Economy Corporation (MDEC) and Malaysian Investment Development Authority (MIDA) played a key role in facilitating these investments.

According to Mahadhir Aziz, Chief Executive Officer of Malaysia Digital Economy Corporation (MDEC), the Malaysia Digital (MD) national strategic initiative aims to transform the nation’s digital capabilities, enhancing our value proposition to attract digital investments and boost the digital economy.

“Vantage’s new data center not only strengthens Malaysia’s digital infrastructure but also accelerates our ongoing digital transformation. This move signifies continued confidence in Malaysia’s robust and enabling data center ecosystem, digitally skilled talent, and world-class infrastructure,” he commented.

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