Labu to host billion-ringgit green data centre

  • Business
  • Thursday, 02 May 2019

Huge facility: Shimokawa says the centre will have a total of 11,150 sq m of lettable space.

KUALA LUMPUR: A billion-ringgit next-generation green data centre with supercomputing technology facility will be built near Labu, Negri Sembilan, to host mission-critical applications and data of Japan’s leading enterprises, information technology, telecommunication and automobile companies.

The project, which is undertaken by Japanese owned Regal Orion Sdn Bhd, is expected to be completed by October next year.

Its chairman and owner Ryuichi Shimokawa said the entire project, which is situated at Bandar Baru Enstek, would cost RM1.2bil.

He said the company had acquired a partially-completed data centre facility for RM69mil last year and work to complete the building is now being carried out by a renowned Japanese contractor specialising in the data centre construction.

The building is 80% completed now and would take at least another year for the network equipment to be commissioned and installed.

“It will be fitted with the latest supercomputer technology and the first phase is expected to be fully operational by next October,” he said.

He said the facility is also designed to reduce data carbon footprints by up to 15%.

The rollout of the tier-4 platinum class data center would be carried out in three phases.

“Phase two would kick in between eight and 12 months after the launch, followed by phase three at the end of 2021.”

He said phase one has already been fully rented out and Regal Orion is negotiating with Japanese companies, including a renowned car maker, to subscribe to the second phase of the data centre.

Shimokawa said the centre will have a total of 11,150 square metres of lettable space, capable of hosting 4,064 racks, making it the largest facility to be housed within a single site in South-East Asia.

“Under phase one, the company is expected to rake in a net profit of RM450mil.”

Regal Orion will be the second Japanese company to invest in such a data centre in Malaysia. The other is NTT communications which had already established its facility in Cyberjaya in 2016.

Shimokawa, who is also involved in the import of building materials from South-East Asian countries, said he had so far privately invested US$25mil (RM103mil) into the project and would seek bank and private investor funding to finance the project.

“We are currently talking to several keen private Japanese investors to pump money into the project. In principle, they all have agreed,” he said but declined to provide details.

Shimokawa, who currently owns 100% of Regal Orion, said it has also acquired a piece of land next to the existing facility for future expansion.

He said Malaysia has the ideal environment to host data centres.

“The country has good and sufficient electricity supply, is economically and geographically stable and offers cheaper operating cost compared with Singapore and Japan.”

He said with more Japanese enterprises looking to host their data outside Japan, Malaysia can be a perfect place for such facilities.

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