Malaysia, China To Set Up High Performance Data Center In Malaysia

The high performance data center, which spans a 20-acre site at the Sedenak Tech Park in Johor, is a significant development for Malaysia.

Malaysia, China To Set Up High Performance Data Center In Malaysia

Shanghai DC-Science Co. Ltd. of China is collaborating with MN Holdings Berhad, a Malaysian underground utilities and substation engineering specialist, to build first high performance data center in Malaysia.

The project has an estimated total value of more than $600 million, according to a statement released by MN Holdings on Monday. On April 1, 2023, Mutu Nusantara Sdn Bhd, a wholly owned subsidiary of MN Holdings, and DC-Science signed a memorandum of understanding (MOU) for the data centre.

The data centre project is one of several foreign direct investments that Malaysia’s prime minister, Datuk Seri Anwar Ibrahim, has secured in advance of his first trip to China, which will take place from March 30 to April 2, 2023.

The high performance data center, which spans a 20-acre site at the Sedenak Tech Park in Johor, is a significant development for Malaysia. After establishing more than 300 data centres throughout China, this is DC-Science’s first location outside of that country.

According to the project’s current planning, utilities will include a 120 MW power load with a dual power supply to support the 12,000-rack facility. A daily average water supply of about 5,000 metric tonnes (MT) is anticipated, and the network access infrastructure must be ready.

The project’s first phase is expected to start with development this year and operations in the first half of 2024. According to Loy Siong Hay, managing director of MN Holdings, the company is honoured to represent Malaysia as a DC-partner of Science and to help the data centre service provider’s first project launch successfully.

According to him, the collaboration is evidence of MN Holdings’ core competency in the construction of underground utilities and substation engineering solutions, which includes installing electricity transmission cables, sewerage and drainage pipelines, as well as building and commissioning the plant.

Additionally, it represents a further diversification of MN Holdings’ clientele in light of the company’s success in attracting more involvement in large-scale solar (LSS) projects and other tasks connected to local data centres and the semiconductor industry, he added.

We are honoured to assist DC-Science in its entry into Malaysia. This development strengthens Malaysia’s reputation as an investment location and will help local talent support the thriving data centre sector, according to him.

He also thinks that by working with DC-Science, the company will be able to further develop its technical expertise in data centre engineering and construction. He continued, We are prepared to offer our expertise in underground utilities infrastructure development and engineering as Malaysia sees more investments from both the local and international fronts.

The most recent collaboration with DC-Science will also help MN Holdings grow its order book, which was worth MYR 325.9 million ($73.69 million) as of January 20, 2023.

In order to support the country’s expansion of digitalization in telecommunications, MN Holdings said the company will keep looking into opportunities among local and foreign clients here. It will draw on its core expertise in underground utilities and substation engineering.

When DC-Science and MN Holdings sign the supplemental agreement, the specifics of the work’s scope will be resolved. MN Holdings’ main business is the provision of infrastructure utility services, including engineering services and solutions for substations and underground utilities.

The company primarily provides services to customers in Malaysia’s telecommunications, power, gas, and sewerage industries. Main contractors for utility projects, real estate investors, and businesses that need its services to enable the supply of power to buildings make up the majority of its clients.

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