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Sedenak Tech Park Leads Malaysia's Data Center Expansion


Written by Fazrina Fezili

The Sedenak Tech Park (STeP), formerly known as Kulai Iskandar Data Exchange (KIDEX), spans across 745 acres, dedicated to attracting the development of Data Centres. This secure area boasts abundant energy and water resources crucial for the operation of international standard data centres. Supported by the Malaysia Digital Economy Corporation (MDEC), STeP stands as a major alternative Data Hub for the Southeast Asia region, given its proximity and dark fibre connection to Singapore.

STeP is developed under the live-work-play principle and is a vital component of the larger 7,290-acre Sedenak Technology Valley (STV). STV is envisioned to incorporate industries, retails, and residences aligned with Industry 4.0 standards, embracing automation and data exchange in manufacturing technologies. This includes cyber-physical systems, the Internet of Things (IoT), cloud computing, artificial intelligence, and smart factory concepts. Additionally, STeP will integrate sustainable energy from planned Solar Farm and Cogeneration Plant installations.


The Impact of Malaysia's Growing Data Centre Business on the Property Market



The data centre industry in Malaysia is experiencing rapid growth, projected to continue in the upcoming years, with significant implications for the local real estate sector. This growth trajectory has been accelerated by factors such as increased internet usage across various sectors like commerce, social media, entertainment, and cloud adoption.

Malaysia has witnessed substantial demand from global players like Microsoft, Vantage Data Centres, Bridge Data Centres and Amazon, as well as local operators such as AIMS Data Centre and TM ONE. Kuala Lumpur and Johor have emerged as key data centre hubs, attracting investments from various stakeholders, including growth capital, buyout firms, real estate investors, and infrastructure players.

Kuala Lumpur's data center supply has increased significantly over the years, with Cyberjaya emerging as a key hub due to factors like affordable land prices and reliable power infrastructure. Johor, in particular, has gained prominence as an alternative hub which also an attractive option for investors due to its proximity to Singapore, favorable support from local authorities, and availability of land and power.

Key developments in Johor include projects like JB1 by Open DC, Iskandar Puteri Core Data Centre (IPDC) by VADS Berhad, Sedenak Tech Park by Yondr Group, and SEA Data Centre by YTL Power International Berhad.

Malaysia's strong GDP growth, combined with the announcement of cloud regions by major players like Amazon Web Services (AWS) and Google, positions the country as a leader in the Southeast Asia data center market. Malaysia outperforms peers like Indonesia, Vietnam, the Philippines, and Thailand in terms of GDP growth and transparency in doing business.

The Malaysian Data Centre White Paper report highlights Kuala Lumpur's high cloud demand and Johor's potential as a regional hub for data centers, attracting both Western and Chinese hyper-scale service providers. This indicates a promising future for the Malaysian data center market, with significant investment expected in the coming years.

This surge of interest is evidenced by significant developments like YTL Green Data Centre Park and Sedenak Tech Park, positioning Malaysia as a leader in the Southeast Asia data centre market.

Source: New Straits Times


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Article Highlights

Sedenak Tech Park

Data Center

Bridge Data Centres



Malaysia Digital Economy Corporation

Kulai Iskandar Data Exchange



Digital Economy growth


Kuala Lumpur


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