GDS Holdings to develop hyperscale data centre in Johor

GDS said the Nusajaya site is an ideal location to meet regional demand as it is near fast-growing Johor Bahru and the established data centre hub in Singapore.

KUALA LUMPUR: GDS Holdings Ltd plans to develop a hyperscale data centre campus in Nusajaya, Johor which is its first step to expand its platform into South East Asia.

GDS, which is a leading developer and operator of high-performance data centres in China, said on Friday the centre in Johor will have a total net floor area of about 22,500 sq metres, with 54 MW of total IT power capacity

The company, which is listed on Nasdaq and Hong Kong Exchange, said it had signed a definitive agreement to acquire greenfield land in the Nusajaya Tech Park, Johor.

The first phase of the development, with an IT power capacity of 18 MW, is expected to be completed in early 2024.

GDS said the Nusajaya site is an ideal location to meet regional demand as it is near fast-growing Johor Bahru and the established data centre hub in Singapore.

Due to the limited supply of new data centre capacity in the area, it will be highly marketable to hyperscale customers, in particular to GDS’s existing Chinese customers seeking to expand their presence in Malaysia and Singapore.

“We are very excited to take the first major step in the execution of our regionalisation plan with this strategically located project in Johor,” said GDS chairman and CEO William Huang,

“Our home market Chinese customers see great potential for digital transformation in Malaysia and the South East Asia region. They are strongly supportive of our development strategy.”

Johor Menteri Besar Datuk Hasni Mohammad said the state welcomed this investment from GDS and the data centre expertise it will bring to Johor.

“Their presence in the Nusajaya Tech Park is the perfect complement to our agenda to drive development in digital transformation and solidifying Johor's strategic location as a hub for regional growth,” Hasni said.

Malaysia’s Digital Investment Office (DIO) -- a collaborative effort between Malaysian Investment Development Authority (MIDA) and Malaysia Digital Economy Corporation (MDEC) -- welcomed GDS’ investment to support Malaysia’s aspiration towards a digital economy hub.

MIDA CEO Arham Abdul Rahman said Malaysia was privileged to host GDS’s data centres in the country.

“The data centre industry has been a key aspect in building the country’s digital economy, especially in new job creation and inspiring digital upskilling of the local workforce and businesses.

“Therefore, we are indeed supportive of having GDS embarked on this expansion journey that witnesses the company’s commitment and confidence in Malaysia in line with the government strategies to propel Malaysia’s progression to becoming a regional data centre hub.”

MDEC CEO Surina Shukri said GDS’s presence in Malaysia will boost the country’s competitive advantage in attracting more data center investments and strengthen the data centre ecosystem in line with the goals of the Malaysia Digital Economy Blueprint.

“As a globally-recognised data centre provider, GDS brings world-class capabilities that will further strengthen our digital infrastructure, promote digital transformation and accelerate Malaysia’s digital growth,” Surina said.

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