From AWS Region to STT GDC, Malaysia’s data center industry expands

• AWS Region in Malaysia to go live in 2024.
• The region will support cloud and AI needs for organizations in Malaysia and the region. 
• Meanwhile, STT GDC partners Basis Bay to develop data centers in Kuala Lumpur and Cyberjaya.

Malaysia is currently one of the fastest-growing data center markets in the APAC region, with new data centers being announced almost every month in 2023. Some of the big companies already operating in Malaysia include NTT Data Centers, Bridge Data Centers and Equinix. Apart from the more well-known Kuala Lumpur and Cyberjaya, Johor is another popular spot for data centers.

In 2022, Amazon Web Services (AWS), Microsoft, Google, and Telekom Malaysia received conditional approval to establish and operate hyperscale data centers and offer cloud services in Malaysia, with Chinese cloud provider Alibaba already present in the market.

Now, AWS has reaffirmed its commitment to the Malaysian data center market as the company announced that the new AWS Region in Malaysia will be live in 2024. AWS had previously announced a pledge to invest RM25.5 billion to build a new AWS Region in Malaysia by 2037.

The new AWS Region in Malaysia will play a pivotal role in advancing the country’s digitization ambitions and meeting the high demand for cloud services, while supporting innovation in Malaysia and across Southeast Asia. This new AWS Region will also allow customers with data residency preferences to store data securely in Malaysia, help customers achieve even lower latency, and serve the demand for cloud services across Southeast Asia.

The AWS Region in Malaysia

Apart from meeting the high demand for cloud services, the AWS Region in Malaysia will also support startups, small and mid-sized businesses, enterprises, and public sector organizations to collaborate, experiment, and thrive, with access to the latest technologies such as generative AI, machine learning, IoT and more.

In Malaysia, AWS currently supports digital services for Al Rajhi Bank, Bank Islam, Cancer Research Malaysia, Pos Malaysia, the Department of Polytechnic and Community College Education (DPCCE), the Department of Statistics Malaysia, Maxis, and Petronas.

In September this year, Petronas, Gentari Sdn Bhd (Gentari), Amazon, and AWS announced that they would work together to accelerate their sustainability and decarbonization initiatives. Petronas and AWS will design and construct a state-of-the-art plant that incorporates cutting-edge technology, robotics, and automation solutions similar to those used in Amazon warehouses and facilities. Petronas will also continue using AWS’s broad and deep set of technologies to improve and expand existing and new solutions.

To ensure there is a sufficient workforce for the AWS Region in Malaysia, as well as support the need for skills in the country, AWS has trained more than 50,000 people in Malaysia with cloud skills since 2017. AWS is also collaborating with World Education Placement Services to provide free cloud computing skills development and job training through the AWS re/Start program.

From AWS to STT GDC

Another day, another data center was launched in Malaysia. This time, ST Telemedia Global Data Centres (STT GDC) has partnered with Basis Bay to develop, construct and operate data center projects in Kuala Lumpur and Cyberjaya.

STT GDC, which is also one of the world’s fastest-growing data center providers, plans to build its first data center campus in Cyberjaya. This new data center campus will support the development of two buildings on over three acres of land, delivering close to 20MW of IT load. With Malaysia’s growing demand for digital infrastructure, the joint venture is also actively sourcing new opportunities to expand further within the country.

Named Cyberjaya DC.2, the data center comprises a Rated-4 facility designed as a highly secure, eco-green premium data center that meets the global standards of security and sustainability. This means the data center takes into account the environmental nuances unique to the surrounding habitat.

Expected to be ready for service in 2024, the data center will focus on serving local and international banks, financial institutions, government agencies and other similar mission-critical industry segments.

Meanwhile, the second data center named ‘STT Kuala Lumpur 1’ is expected to serve the hyperscale segment. Construction of the first phase is expected to begin in the coming months and is anticipated to be completed by 2025.

STT GDC already operates 85 data centers spanning 10 geographies around the world. The company brings global expertise, international standards, best practices, advanced technology, and access to a wider market including hyperscale customers across its global platform.

“STT GDC’s expertise in operating data centers to the highest standards and its commitment to building a global platform based on responsible, dependable, and replicable processes align well with Basis Bay’s established local operating track record. This strategic venture will not only add another crucial market to our global data center platform but also reinforce our expanding foothold within Southeast Asia, deepening our roots in this dynamic high-growth region,” said Lionel Yeo, CEO, Southeast Asia of STT GDC.

Basis Bay, a leading provider of sustainable cloud and green data centers, will ensure the facilities have a deep understanding of the local landscape and regulatory nuances. Basis Bay presently offers collocation and data center managed services from two data centers in Malaysia, one each in Glenmarie and Cyberjaya, and boasts a long heritage of being one of the first vendors and carrier-neutral data center operators in Malaysia, with a track record of more than 27 years.

“This partnership is strategically positioned to meet the volume and scale requirements of hyperscalers while simultaneously delivering the super high availability needs of financial institutions. This partnership will also emphasize much-needed local participation and control, thus addressing data sovereignty concerns. Basis Bay provides premium cloud services and will continue to be a service provider of data center services tailored for financial institutions,” said Datuk Praba Thiagarajah, Executive Chairman of Basis Bay.

With this partnership, STT GDC will expand its footprint in Southeast Asia and strengthen its position as a leading provider of data center solutions in the region, catering to the growing demand for reliable, resilient, and responsible infrastructure to support digital transformation initiatives.

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