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Promoting Malaysia as regional data centre hub

AvantiKumar | Jan. 23, 2013
MDeC serves as patron of second international data centres summit.

2nd Malaysia international datacentre forum

Photo - (from left) Philip Low, Group Managing Director, BroadGroup; Datuk Seri Dr S. Subramaniam, Minister of Human Resource Malaysia; Ng Wan Peng, Chief Operating Officer, Multimedia Development Corporation (MDeC); and Wan Murdani Wan Mohamad, Director, EPP3 Data Centre, NKEA Business Services, Multimedia Development Corporation (MDeC).


Malaysia received another push in its aim to be a regional data centre hub during the second International Datacentres summit, which was held in Kuala Lumpur, organised by consulting firm BroadGroup.

The national ICT agency Multimedia Development Corporation (MDeC) served as patron of the two-day event as one of the Malaysian government's entry point projects (EPP) in the Malaysian Government's Economic Transformation Programme (ETP) is to develop the country into a world class data centre hub.

MDeC chief executive officer, Datuk Badlisham Ghazali, said: "Becoming a world-class data centre hub aligns with the vision for Malaysia to become a high income nation by 2020, as envisaged in the ETP. The government is fully committed to grow the data centre sector and has invested about RM14 million [US$4.61 million] into various programmes - led by MDeC - to ensure the local data centre industry players are on par with global standards."

"Driven by the government's commitment, coupled with our key strengths such as economic and climatic stability, abundance of land space, skilled ICT workforce, and excellent infrastructure, Malaysia is fast gaining recognition as a strong contender and a preferred alternative in the next wave of emerging data centre hotspots," said Badlisham.
"MDeC's leading role in EPP3 has enabled Malaysia's local data centre operators to achieve impressive growth. Industry revenues in 2011 were RM300 million [US$98.86 million] and 2012 revenues are expected to exceed RM400 million [US$131.8 miilion]. The industry is expected to contribute RM2.1 billion [US$696 million] towards the country's Gross National Income [GNI] by 2020," he said.

"With global IT spending forecasted to surpass US$3.7 trillion in 2013, data centres are expected to accelerate global economic growth, creating unique job opportunities across the globe," added Badlisham.

In addition, the Datacenter Dynamics 2012 Global Census, a worldwide survey of the data centre industry, shows that that total investment in data centres has grown from about US$86 billion globally in 2011 to US$105 billion globally in 2012, a rise of 22.1 percent. "Asian markets are also seeing strong data centre growth owing to an emerging economy with rising standards of living and increasing reliance on IT. The Asia Pacific data centre market revenue is projected to increase by 16.3 percent annually to reach US$3.4 billion in 2014."


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