GDS Holdings Ltd, a leading developer and operator of high-performance data centres in China, announced the start of construction of its hyperscale 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).

Effect of the Hyperscale Data Centre Construction

In line with the DIO’s role to ease investors’ journey in Malaysia by combining MIDA’s global presence and MDEC’s subject matter expertise in the digital economy ecosystem, the DIO has been working closely with GDS Holdings to facilitate its Request for Information (RFI) during the planning phase of the project, as well as providing support to ensure smooth implementation of the overall project in Malaysia.

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 with it the world-class infrastructure capabilities that will further strengthen Malaysia as the digital hub of ASEAN.

Mahadhir Aziz, CEO of MDEC

Meanwhile, YAB Datuk Onn Hafiz bin Ghazi, Menteri Besar of Johor, said that the project will serve as a catalyst for Johor and Malaysia to emerge as a hub for data centres as well as to stimulate the development of clusters of local public computing services companies. The data centre will also help with job creation, a key priority of the state.

The groundbreaking ceremony that was 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.