HSS Engineers eyeing partnerships with data centre specialists
Published 11 June 2021
Malaysia’s HSS Engineers Bhd is looking to kick-off the development of data centres in Malaysia and South-East Asia, as technology usage has surged post the Covid-19 pandemic.
Its executive vice chairman Tan Sri Kunasingam Sittampalam said the company is engaging with global specialists and is in an advanced talk with one of the parties involved.
“At least one of them is at the very final stage of discussion. They do work with Amazon.com Inc, Microsoft Corp and Apple Inc and they do not have a partner in this part of the world. We will sign a memorandum of understanding with them soon,” he said in a virtual press briefing after the company’s sixth AGM.
Sittampalam said that the pandemic has caused businesses to transition their operations online which has led to a high demand for data centres.
One of the key drivers for companies such as HSS Engineers to get into data centres has to do with the Singapore government’s recently imposed a moratorium on the establishment of new data centres, due to power and land shortage. “Neighbouring countries such as Malaysia and Indonesia can benefit from the spillover demand,” said Sittampalam.
“The sector in Malaysia is expected to experience revenue growth of more than US$800 million (RM3.3 billion) by 2030. In addition to this, industry statistics anticipate the data centre market in SouthEast Asian countries, such as Singapore, Malaysia, Indonesia and Thailand, to grow at 14 per cent compounded annual growth rate to US$3.5 billion in the next decade,” he said.
He added that the company is leveraging its project management consultancy (PMC) experience to directly pursue opportunities with Digital Nasional Bhd for the implementation of 5G technology in the country.
When asked if HSS Engineers is in talks with the government for 5G, Sittampalam said: “Actually, the government has called for a bid and we have participated in it. I cannot disclose further on it,” adding that the project consists of multiple stakeholders, project complexities and intensive resource requirements.
As such, it would require significant coordination in the implementation which is a scope similar to the group’s current role as DMO (delivery management office) for multiple projects under the Northern Corridor Implementation Authority.