GDS Holdings ‘Breaks Ground’ On Hyperscale Data Centre Campus

GDS Holdings 'Breaks Ground' On Hyperscale Data Centre Campus in Johor, Malaysia, a project supported by MIDA, MDEC.

GDS Holdings Ltd, a leading developer and operator of high-performance data centres in China, is pleased to announce 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 Malaysian Investment Development Authority (MIDA).

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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.

Ms. Lim Bee Vian, Deputy Chief Executive Officer (DCEO), Investment Development, MIDA, commended the company’s investment into the country.

“Malaysia is honoured to host GDS data centres in the country. Data centres are a key infrastructure enabler to transform Malaysia towards an advanced digital nation, paving the way for modern businesses. MIDA, through the Digital Investment Office will continue our efforts in transforming new and existing economic clusters and facilitating strategic investment partners like GDS Holdings, as digital enablers to create high income jobs and encourage digital upskilling of the local workforce and businesses,” she said.

According to Mahadhir Aziz, CEO of MDEC, GDS Holdings’ presence in Malaysia and the construction of the hyperscale data centre will have a great positive effect towards the development of Malaysia’s digital economy.

“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,” said Mahadhir.

“I would also like to express my gratitude to Invest Johor and the Johor State Economic Planning Division (BPENJ) for their support and assistance for this project. Building a thriving digital economy and infrastructure takes an entire nation – MDEC will continue driving more collaborations to further develop the country’s burgeoning data centre industry,” he added.

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 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 entry of GDS and its hyperscale data centre to Johor is very welcomed and timely. We see this as a validation of our state’s attractiveness as a top international and domestic investment destination. This in turn is driven by our world-class infrastructure and lifestyle offerings, as well as the state’s enduring stability. I truly hope this will be the first of many such investments and projects here,” he added.

GDS Chairman and CEO William Huang said that Malaysia is the ideal nation for the major step of the company’s regionalisation plan, thanks to its strategic location, worldclass infrastructure, and access to high-skilled, multi-cultural and multi-lingual talent.

“These factors, including Nusajaya’s proximity to Johor Bahru and Singapore, will be great for existing GDS customers looking to expand in the region. We are thankful for Malaysia’s robust ecosystem in supporting our presence here,” Huang added.

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 Shanghaiheadquartered company’s long-term investment plan into Malaysia and Southeast Asia and includes the development of a potential Phase 2 of the Nusajaya data centre campus.