KUALA LUMPUR: Malaysia has a strong potential to become a regional hub for data centres as well as co-location (CoLo) providers on a myriad of factors including cheaper land, lower electricity cost and skilled workforce.
Vertiv Malaysia Sdn Bhd country manager Hitesh Prajapati said Malaysia has been rated as one of the top locations for data centres in Southeast Asia and it was also leading in terms of cloud technology adoption.
According to Malaysia Digital Economy Corporation (MDEC), the data industry in Malaysia is expected to more than double to RM2 billion by 2020.
This growth was seen as a result of the increase in the use of big data analytics, cloud computing and data recovery, he told Bernama.
“With emerging technologies, the atmosphere is good for Malaysia to become a regional data hub. We are already seeing numerous regional/global CoLo providers setting up shop here.
“There are several reasons for this, such as ample land, good infrastructure, a skilled workforce, political stability, as well as, good international connectivity making it ideal for many global network providers.
“Moreover, unlike its other neighbours like Singapore and Hong Kong, set-up prices here are also attractive,” said Hitesh.
The government’s keen support for data centre growth in the country with several initiatives seen in place, will also help to bolster the digital economy, he added.
But, while it does have its advantages over its Asian neighbours, Hitesh said the challenge remained for Malaysia to achieve the reputation and confidence that Singapore has achieved.
The fact remains that many businesses still prefer Singapore and/or Hong Kong as they are more “established”.
However, with enough government support, he said Malaysia would be well on its way to become a regional hub in the near future.
On the group’s business growth this year in Malaysia, he said Vertiv or formerly known as Emerson Network Power, expected strong growth in the Malaysian market,.
Business has been growing well last year contributed mainly by the telecommunication and CoLo data centers.
Vertiv designs, builds and services critical infrastructure to power vital applications for data centres, communication networks, commercial and industrial facilities.
“We are now witnessing multiple opportunities for critical infrastructure spurred by the technology investments of local and global businesses, as well as, excellent initiatives by MDEC and other government agencies towards expanding Malaysia’s Digital economy.
“Technology trends like Internet-of-Things, edge computing, cloud computing, e-commerce and big data are driving many organisations to invest in or upgrade their critical infrastructure to meet these new challenges,” he said. — Bernama