Giant hyperscale data centre in AI park

G# Global Tee qt

PETALING JAYA: G3 Global Bhd plans to house the country’s largest hyperscale data centre in the proposed Artificial Intelligence (AI) park in Bukit Jalil, starting with three 10MW hyperscale data centres in the first phase of development.

At maturity, the data centres will have a potential end state of 100MW.

G3 Global executive director Dr James Tee said G3 Global has the opportunity to take a leading role in the hyperscale data centre space through the group’s association with Green Packet Bhd.

It will support the initial demand by Tencent Cloud’s operations in Malaysia as part of its global node, as well as meet demand from other large scale anchor cloud operators.

In August, Green Packet inked a 10-year agreement with Tencent Cloud to provide cloud computing solutions in Malaysia.

“The hyperscale data centre will be scaled according to demand progressively.

“G3 Global is in discussions with domestic and regional hyperscale data centre partners on potential collaborations.

“We are also open to collaborating with strategic partners who bring demand from their extensive network and user base, ” he told StarBiz.A hyperscale data centre caters to between one and three clients who require higher technology specifications and greater data capacity for their operations.

In comparison, a standard data centre serves some 50 to 100 enterprises.

At present, Singapore is the data centre hub for the South-East Asian region, providing 64% of total supply with a capacity of 410MW in 2019.

Tee noted that Singapore’s data centre capacity is expected to grow by a compound annual growth rate (CAGR) of 6% to 542MW in 2024, according to research firm Analysys Mason.

However, further supply will be hampered by shortage of land and power, as well as cost concerns.

“Hence, Malaysia is well positioned to capture the spillover demand from Singapore, given the close proximity, greater availability of land and power, as well as low connectivity cost.

“This is potentially similar to Langfang and Zhangjiakou, which are key data centre hubs in Greater Beijing, due to land scarcity and power constraints in Beijing itself, ” he said.

On the domestic front, demand for digital services is expected to be driven by a strong government push for digitalisation and cloud adoption, as well as a shift towards greater digital consumption by enterprises and consumers as a result of the Covid-19 pandemic.

Bank Negara’s new policy on risk management in technology would drive demand for outsourced data centre co-location and cloud services for financial institutions, as on-premise servers will not meet the new requirements, Tee said.

According to MDEC, co-location data centre capacity is expected to grow by 12% CAGR from 59MW to 104MW between 2019 and 2024.

At present, cloud and Internet giants lease more than 70% of their hyperscale data centre footprint from commercial data centre operators.

“Some of the very powerful value drivers that companies should look to exploit from hyperscale cloud platforms are cost, scalability and interoperability. The hyperscale platforms provide the ability to handle immense volumes of activity and data, quickly and seamlessly.

“In addition, the hyperscale provider’s cloud platform allows customers to extend and build out their capabilities, as well as offers integration with other systems at a lower cost, ” said Tee.

The hyperscale data centres will also support the deployment of autonomous cars, which generate between 380 Terabyte (TB) to 5100TB of sensor data per car annually.

The AI park, which will house AI research-related public service infrastructure as a base to promote AI technology in Malaysia, will also feature autonomous cars, among other AI technology such as licence plate and facial recognition.

According to a Bursa Malaysia filing on Oct 9, G3 Global received a letter of intent from Technology Park Malaysia Corp Sdn Bhd for the building of the AI park at Technology Park Malaysia.

G3 Global has teamed up with the world’s largest AI firm, SenseTime, along with China Harbour Engineering Company Ltd to jointly develop the park.

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