business

GDS Holdings kickstarts construction of hyperscale data centre campus in Johor

KUALA LUMPUR: GDS Holdings Ltd, a leading developer and operator of high-performance data centres in China, has started constructing its hyper-scale data centre campus in Nusajaya, Johor.

The development of this project is supported by the Digital Investments Office (DIO), a collaborative platform between Malaysia Digital Economy Corporation (MDEC) and the Malaysian Investment Development Authority (MIDA).

MIDA deputy chief executive officer Lim Bee Vian said data centres are a key infrastructure enabler to transform Malaysia into an advanced digital nation, paving the way for modern businesses.

"MIDA, through the DIO, will continue our efforts in transforming new and existing economic clusters and facilitating strategic investment partners like GDS Holdings as digital enablers to create high-income jobs and encourage digital upskilling of the local workforce and businesses," she said in a statement today.

DIO has been working closely with GDS Holdings to facilitate its Request for Information (RFI) during the project's planning phase and provide support to ensure the smooth implementation of the overall project in Malaysia.

MDEC chief executive officer Mahadhir Aziz said GDS Holdings' presence in Malaysia and the construction of the hyper-scale data centre would have a great positive effect on the development of Malaysia's digital economy.

"The new centre signifies Malaysia's competitive advantage in attracting data centre investments, in line with our aspirations under the Malaysia Digital initiative.

"It also brings world-class infrastructure capabilities that will further strengthen Malaysia as the digital hub of ASEAN," said Mahadhir.

He thanked Invest Johor and the Johor State Economic Planning Division (BPENJ) for their support and assistance with this project.

"Building a thriving digital economy and infrastructure takes an entire nation – MDEC will continue driving more collaborations further to develop the country's burgeoning data centre industry," he added.

GDS chairman and chief executive officer William Huang said Malaysia is the ideal nation for the major step of the company's regionalisation plan, thanks to its strategic location, world-class infrastructure, and access to high-skilled, multi-cultural and multi-lingual talent.

"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 supporting our presence here," Huang added.

The groundbreaking ceremony held in Nusajaya, Johor, on 24 April 2022 kickstarts Phase 1 of GDS Holdings' hyperscale data centre campus, which is expected to be completed by 2024.

This marks the beginning of the Shanghai-headquartered company's long-term investment plan in Malaysia and Southeast Asia and includes the development of a potential Phase 2 of the Nusajaya data centre campus.

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