Daily Newsletter

03 November 2023

Daily Newsletter

03 November 2023

STT GDC and Basis Bay JV to build new data centres in Malaysia

The STT Kaula Lumpur 1 data centre will cater to the hyperscale market while Cyberjaya DC.2 will serve financial institutions.

November 03 2023

ST Telemedia Global Data Centres (STT GDC) and Basis Bay have established a joint venture (JV) to construct and operate data centres in Kuala Lumpur and Cyberjaya in Malaysia.

The JV intends to construct its first data centre campus in Cyberjaya.

This new data centre campus will see the construction of two buildings on more than three acres of land, delivering approximately 20MW of IT load.

To be known as Cyberjaya DC.2, this first building will have a Rated-4 premium data centre certification, which meets global standards for sustainability and security.

The campus will serve local and international banks, financial institutions, government organisations, and other mission-critical companies and is set to become operational by next year.

Named STT Kuala Lumpur 1, the second building will cater to the hyperscale market. Phase one of construction is set to begin in the coming months and will be finished by 2025. 

Basis Bay executive chair Dato’ Praba Thiagarajah said: “This partnership is strategically positioned to meet the volume and scale requirements of hyperscalers while simultaneously delivering the premium, super-high availability needs of financial institutions and the like.

“This partnership will also emphasise the much-needed local participation and control, thus addressing data sovereignty concerns.”

This strategic JV is an exclusive domestic direct investment-foreign direct investment collaboration between Basis Bay and STT GDC.

STT GDC South-East Asia CEO Lionel Yeo said: “This strategic venture will not only add another crucial market to our global data centre platform but also reinforce our expanding foothold within Southeast Asia, deepening our roots in this dynamic high-growth region.”

South-East Asia Construction Market Dynamics

Per GlobalData analysis, the South-East Asia construction industry in 2023 is dominated by Indonesia, though the country will see a slowdown compared to 2022 due to elevated building material prices, weak commercial property demand, high interest rates and a softening of external demand. The construction industry in the Philippines is estimated to register a AAGR of 7.2% between 2024 and 2027, supported by the government’s focus on the development of the country’s rail and road transport and energy infrastructure.

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