Green Packet Bhd, a Malaysia-based leading telecommunications, media and technology company has announced an initial investment of MYR 100 million (USD 24 million) to set up a joint Internet data center in Malaysia in partnership with China’s largest internet provider Tencent Cloud. The investment will be used for the setting up of data center infrastructure, including a total of 600 servers and the provision of software solutions, to be fully operational by the first quarter of 2021.
The exclusive collaboration will be in place for a period of eight years until 2028, with a potential to expand for another two years. Under a joint revenue model, Green Packet will be responsible to set up the infrastructure in Malaysia, while Tencent Cloud will be providing the cloud computing services. It is anticipated that the initial phase will focus on developing the 600 servers and the number might increase to more than 3,000 to 4,000 servers by next four to five years.
Green Packet’s CEO noted that the adoption of cloud services in Malaysia is at its infancy stage and the accelerated efforts in digital transformation by the Malaysian government and local private companies indicate significant untapped potential. She noted that Green Packet’s subsidiary, Kiplepay Sdn Bhd, a local fintech player is also aiming to leverage on the new infrastructure and introduce new payment services.
The cloud market in Malaysia is currently valued at an estimated USD 2 billion in revenue and expected to grow at a compounded annual growth rate (CAGR) of 13% to 15% over the next five years. At present, the largest data center owner in Malaysia is local company, Telekom Malaysia which operates 12 data centers with more than 180,000 square feet total data center space through its subsidiary TM One. Other global and local data center players with presence in Malaysia include Singapore’s Bridge Data Centers, Japan’s NTT Malaysia, Malaysia’s Strateq, Malaysia’s AIMS (Time) and Singapore’s Keppel Corporation.
(Sources: Green Packet Bhd; The Edge Markets)