Vantage Data Centers announced a second data center campus (KUL2) with an additional US$3 billion (RM13.32b) investment in Cyberjaya, Malaysia, today.
The KUL2 hyperscale campus will be located adjacent to Vantage’s existing campus in Cyberjaya. The campus will be sited on nearly 35 acres and will include 10 facilities across 256,000 square meters (2.75 million square feet). The campus is strategically located to provide low-latency connectivity to major cities in the region, including Singapore, Bangkok and Jakarta.
The KUL2 will feature multiple layers of physical and virtual security measures to protect against threats. The first facility is planned to open its doors in the fourth quarter of 2025.
In addition to the KUL2 campus, Vantage is also expanding its KUL1 campus with a fourth 16MW facility. Combined, both campuses will deliver a total of 287MW of IT capacity to meet the demands of hyperscalers, cloud providers and large enterprises.
Malaysia is among the hubs for data centers in Southeast Asia due to its strategic location, political stability, and growing digital economy. Malaysia has a well-established telecommunications infrastructure with several undersea cables that provide high-speed internet connectivity to other countries in the region.
Amazon Web Services (AWS) announced that it will be investing RM25.5 billion in Malaysia to develop its cloud services infrastructure in the country. Other leading data center providers in Malaysia include AIMS DC, Bridge DC, TM One, NTT Communications, Strateq, Basis Bay, HDC and others.
Analysts anticipate that Malaysia will become a major Asian hub for data centers, with supportive pro-business policies to attract and retain data center investors.
The Malaysia data center market is expected to grow at a CAGR of 9.41% during the 2022-2028 period, according to Arizton’s research. The Malaysia data center market will attract investments worth US$2.25 billion in 2028 while the colocation market revenue is tipped to hit US$450 million in the same year.
Moreover, according to RHB, with hyperscalers arriving, data center capacity plant-up in Malaysia is accelerating. Over the next five years, the country is expected to experience a wave of new and developing data center investments totaling more than 800MW in capacity, with cheaper land and energy costs serving as the main drivers.