KL1 in Cyberjaya and JH1 in Johor. Currently, the KL1 facility has a capacity of 4.8MW, with 2.4MW of power actively in use (pic: MUHD AMIN NAHARUL/TMR)
Malaysia is currently the fastest-growing market in the ASEAN region for data centres, fuelled by an expanding digital economy and regional demand for infrastructure
by SHAUQI WAHAB
EQUINIX Inc, one of the world’s largest digital infrastructure companies, is doubling down on its presence in Malaysia with a roadmap that intertwines sustainability, artificial intelligence (AI) readiness and regional digital connectivity.
Equinix Malaysia MD Cheam Tat Inn said Malaysia is currently the fastest-growing market in the ASEAN region for data centres, fuelled by an expanding digital economy and regional demand for infrastructure.
“Malaysia is very well-positioned because we are one of the few countries globally that has three key tech ecosystems in one place — data centres, AI and semiconductors, placing us in a strong position to support the digital growth of the region,” he shared during a media tour of Equinix’s KL1 Data Centre recently.
Johor, in particular, has emerged as a hotbed for data centre activity due to its proximity to Singapore.
As Singapore faces physical constraints on further expansion, Johor is quickly becoming the preferred site for regional spillover demand.
Equinix’s presence in Malaysia includes two major facilities — KL1 in Cyberjaya and JH1 in Johor.
Currently, the KL1 facility has a capacity of 4.8MW, with 2.4MW of power actively in use. JH1, meanwhile, is already fully occupied, highlighting the strong demand that has prompted Equinix to move ahead with expansion plans.
The company recently acquired land for a second Kuala Lumpur (KL)-based facility, KL2, located directly across from KL1, and also secured additional space in Johor for future developments.
Though still in the planning stage, KL2 is expected to significantly scale up Equinix’s footprint in Malaysia and will be designed to cater to high-performance computing (HPC) and AI workloads.
This includes advanced infrastructure such as liquid cooling systems and enhanced fibre interconnectivity.
Cheam then highlighted Equinix’s unique value proposition as a global interconnection hub.
“Today, Equinix is probably one of the world’s largest digital ecosystems, connecting 270 data centres in 74 metros across 35 countries.
“This ecosystem allows businesses, networks and cloud service providers to securely integrate,” he said.
He also said Malaysia’s digital landscape is mirroring global trends, with a strong presence of network providers (40%), cloud players (31%) and enterprise users (17%), now gravitating toward AI-driven deployments.
According to Cheam, a lot of these deployments are primarily AI-driven technology — generative video AI or other use cases, suggesting that Malaysia is well on its way to becoming a significant regional player in digital infrastructure.
KL1 data hall where Equinix’s value lies in more than just space and power. A natural concern with Malaysia’s rapid growth in data centre developments is whether TNB can keep up
AI-ready Infrastructure, Partnerships
Equinix Malaysia product marketing director Anthony Ho elaborated on the evolving nature of AI and how it demands purpose-built infrastructure.
“We no longer talk about AI as a buzzword. It has evolved into training models on demand, multimodal AI and AI agents that go beyond Q&A (questions and answers) into assisting specific tasks,” he said.
He added that the applications of AI now encompasses healthcare, agriculture, manufacturing and government.
Ho also addressed infrastructure challenges, particularly those involving energy consumption and cooling, noting that typical data centres may not be able to provide the high power and advanced cooling needed for AI workloads.
“You need something like liquid cooling and proximity to the cloud for hybrid AI deployments,” he clarified.
With the practical implementation of AI technology in almost all sectors, he said the question is not when, but how to make use of it.
He then demonstrated how Equinix is helping businesses deploy AI and hybrid multi-cloud solutions across the Asia Pacific through its AI-ready data centres and real-time connectivity platform.
AI is a major driver of Equinix’s design and infrastructure strategy. As graphic processing units (GPUs) densities increase and AI workloads grow more complex, traditional cooling systems are being replaced with liquid cooling to manage thermal output and maintain efficiency.
To understand more, Cheam described a term called rack density.
“You have to support the high-performance chips of AI workloads. Liquid cooling is more efficient than air cooling for these use cases, and we are integrating it into our next phase of development.”
Ho focused on the practical requirements of running AI workloads and the role that Equinix plays in supporting scalable digital infrastructure.
Equinix continues to refine its operational models in Malaysia to deliver high performance while meeting sustainability targets. —MD Cheam Tat Inn
According to him, deploying AI is not solely about algorithms or software, it is deeply connected to where and how the workloads are run.
He explained that Equinix is uniquely positioned to support enterprises at different stages of their AI journey by providing three key layers of infrastructure and services.
At the foundational level, Equinix offers physical data centres that are built to accommodate the high-density power and cooling requirements of AI hardware, including liquid-cooled GPUs.
These facilities are designed to scale with increasing computational needs, allowing businesses to grow their infrastructure as their AI strategies evolve.
Beyond physical infrastructure, Equinix also provides advanced networking solutions that allow businesses to connect directly to multiple cloud service providers without relying on the public Internet.
Through Equinix Fabric, companies can establish secure, on-demand links to providers such as Amazon Web Services Inc (AWS), Microsoft Azure and Google Cloud, resulting in lower latency and improved reliability.
Ho stressed that this level of private interconnection is critical for businesses that require consistent performance across hybrid and multi-cloud environments.
To demonstrate the real-world application of these capabilities, he introduced a hypothetical case study involving a Malaysian e-commerce company he referred to as EdgeMarket, due to private confidentiality purposes.
The company operates across South-East Asia and is planning to expand its services into Hong Kong and Japan.
Like many digital businesses, EdgeMarket relies on AI to drive its core operations — from generating customer recommendations to managing billing and real-time inventory.
It leverages multiple cloud platforms to power its services, including Google Cloud for AI analytics and Azure for back-end inventory systems.
During the demonstration, Ho simulated a scenario in which EdgeMarket experienced an Internet outage, causing significant delays in transactions and a noticeable drop in customer experience quality.
The disruption affected everything from purchase analytics to inventory response times.
However, once the system was switched to Equinix’s private network solution, the latency stabilised and operations resumed seamlessly.
A typical data centre may not be able to provide the high power and advanced cooling needed for AI workloads as it needs something like liquid cooling and proximity to the cloud for hybrid AI deployments
This example shows the importance of dedicated, reliable connectivity in ensuring uninterrupted performance for cloud-based AI services.
Following the case study, Equinix’s operations director Thomas Wong provided a live walkthrough of the company’s self-service portal, which allows customers to set up private connections between data centres in a matter of minutes.
He illustrated how a customer based in KL could quickly provision a point-to-point connection to a data centre in Hong Kong, simply by selecting their source and destination on the platform.
The interface also allows users to adjust bandwidth based on demand, offering both pay-as-you-go and committed contract options.
According to Ho, the experience is designed to be as intuitive as booking a train ticket — efficient, fast and secure.
Equinix’s vast infrastructure spans 63 metropolitan areas and over 225 data centres worldwide, enabling direct and resilient interconnectivity across regions.
The company also owns or partners with multiple submarine cable systems, ensuring that its Asia Pacific customers enjoy low-latency access to destinations in Europe and North America.
This global footprint allows businesses to connect to their digital ecosystems wherever they operate.
As Ho explained, Equinix’s value lies in more than just space and power. The company uses of private links to connect users directly to AI platforms, bypassing public Internet routes and enhancing cybersecurity.
“These private connections offer a physical layer of security, which is not accessible by others. It is a fundamental part of how we protect our customers’ AI environments,” he shared.
Equinix also offers a platform where cloud providers, AI hardware vendors like Nvidia Corp, and system integrators such as Dell Inc and Hewlett-Packard Enterprise (HP) are already co-located.
This collaborative environment allows companies to deploy comprehensive, end-to-end AI solutions within a single ecosystem.
For organisations that require speed, flexibility and reliability in a hybrid cloud set-up, Equinix delivers infrastructure that is already integrated, scalable and ready for AI-driven operations.
The integration of private, secure interconnections is also vital to Equinix’s AI ecosystem.
Ho explained that Equinix does not source or provide GPUs. Instead, customers deploying AI workloads bring their own systems — including GPUs and servers — and use Equinix’s space and power infrastructure.
“We just provide the power and the space and make sure that our rack density supports the AI workload,” he clarified.
Addressing potential concerns over operational costs, he explained that Equinix follows a clear, service-based pricing model.
Charges include a monthly fee for space and power, and optional services such as fabric interconnection are billed based on usage and location — “a couple hundred ringgit” monthly, depending on the configuration.
Despite increasing infrastructure complexity among clients using both multi-cloud and public cloud, Ho said costs have not become a friction point.
“We are seeing more people asking for digital infrastructure than negotiating costs,” he added.
Equinix is looking for prospects, especially in high-demand areas like Johor, where retail co-location demand currently outpaces supply.
On the subject of US export controls affecting advanced chip technologies, Cheam said Equinix is monitoring the situation closely.
Although aware of potential impacts on AI-related deployments, he noted that so far, there have been no disruptions to their HPC clients in Johor.
On why Equinix highlights partnerships with Nvidia, Dell and HP — but not AMD (Advanced Micro Devices Inc) — Ho said the listed vendors reflect current public announcements.
“We partner with any company in that sense,” he explained, adding that Nvidia remains the dominant player in customer deployments at this time.
Equinix is funding its Malaysian growth entirely through internal resources and as a US-based company, its capex strategy remains fully private
Sustainability and RE Commitments
One of the most pressing questions during the media tour centred on how Equinix is meeting its sustainability goals in Malaysia and beyond.
The company has already committed to achieving 100% renewable energy (RE) usage across its global operations and reported that 96% of its energy consumption is now covered under renewable sources — a figure that includes both KL1 and JH1.
In Malaysia, the company is actively exploring Power Purchase Agreements (PPAs) with local RE providers. While these conversations are ongoing, Cheam clarified that Equinix has already adopted RE sources at its JH1 site.
“For KL1, we are exploring all options — not just solar, because energy generated by these providers must go through the national grid. So, what we do is, subscribe to RE via the grid through a PPA,” he added.
Equinix verifies the sustainability of energy sources by pointing out to the company’s science-based approach.
Cheam said the company follows stringent science-based targets — where Scope 1, Scope 2 and Scope 3 emissions are all measured.
Meanwhile, Wong said the company runs its sustainability initiatives like a business unit, with dedicated teams ensuring compliance and transparency.
“There is an entire department that treats sustainability as a business unit — it is not just lip service,” he added.
A natural concern with Malaysia’s rapid growth in data centre developments is whether the national power grid can keep up.
Cheam believes close collaboration with Tenaga Nasional Bhd (TNB), Malaysia’s national energy provider, is the key.
“We engage in proactive discussions with power suppliers. By transparently sharing our expansion plans and requirements, we believe the ability to satisfy energy demand improves significantly,” he elaborated.
He acknowledged that TNB has been very responsive throughout their endeavours.
According to him, the planning for power-intensive workloads, especially for AI, is important for the company.
Hence, they need to have appropriate infrastructure like high rack densities and sustainable cool- ing solutions.
While Cheam did not provide an exact figure for the power usage effectiveness (PUE) at KL1, he stressed that managing both PUE and water usage effectiveness (WUE) is a delicate balancing act — especially as AI workloads become more intense.
“There is a relationship between power and water usage. When one increases, the other usually decreases, so there is a complex balance to maintain,” he explained.
Cheam added that Equinix continues to refine its operational models in Malaysia to deliver high performance while meeting sustainability targets.
Financial Model and Investment Outlook
Unlike some operators, which rely on joint ventures or government funding, Equinix is funding its Malaysian growth entirely through internal resources. As a US-based company, its capital expenditure (capex) strategy remains fully private.
With both KL1 and JH1 now operational, and KL2 and JH2 in the pipeline, Equinix is positioning Malaysia as a regional digital infrastructure hub. The company’s short-term focus is on stabilising its current operations while finalising plans for its next growth phase.
“We just started with KL1 and JH1, so the first phase was about getting everything up and running — regulatory approvals, customer onboarding.
“Now, we are focusing on phase two — scaling with sustainability, optimising for AI and expanding capacity,” Cheam said.
He reiterated that future developments will prioritise HPC and next-generation digital workloads.
Equinix’s confidence in Malaysia reflects broader industry trends. As Singapore reaches saturation, Malaysia — especially Johor and Cyberjaya — is emerging as a viable and increasingly preferred destination for global hyperscalers and cloud providers.
By integrating AI-readiness, investing in RE and collaborating closely with stakeholders like TNB and the Malaysian Investment Development Authority (MIDA), Equinix is helping Malaysia cement its position as a critical node in the global digital economy.
“Malaysia is at the centre of something big, and Equinix is here to build that foundation,” Cheam said.
- This article first appeared in The Malaysian Reserve weekly print edition
The post Equinix deepens commitment to Malaysia with expansion, sustainability and AI at the forefront appeared first on The Malaysian Reserve.
