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Unlocking Malaysia’s data centre potential: The critical role of ecosystem partnerships

As major players continue to invest in Malaysia, the nation is fast becoming a key player in the data centre arena, with Johor Bahru in the south of the country already recognised as Southeast Asia’s fastest-growing data centre market. As strongly telegraphed by the Malaysian government, there is no mistaking the ambition to transform Malaysia into a high-tech industrialised nation as part of New Industrial Master Plan 2030 (NIMP 2030).

However, data centres aren’t standalone infrastructures. Seizing this opportunity will require a focused effort on solidifying a bedrock of cybersecurity, cloud and connectivity services, and overall capacity and continuity – areas in which leading players across the private sector technology ecosystem can collaborate to accelerate Malaysia’s agenda.

Cybersecurity is everyone’s responsibility

Cybersecurity is non-negotiable when it comes to Malaysia’s ambitions to become a tech hub in an AI-driven world. According to Orange Cyberdefense data, cybersecurity threats will only increase – its latest Cy-Xplorer report revealed that cyber extortion had impacted 75 per cent of all countries since 2020 and 118 countries in the last year alone. As the threat and risk landscape evolves, data centre hubs must have a cybersecurity strategy, approach, and posture as their primary line of defence.

Similarly, tenants who store their servers and data within the infrastructure are also responsible for implementing their own cybersecurity solutions. In response to the escalating threat of ransomware and cyber extortion, one notable initiative that has gained traction in recent years is the Counter Ransomware Initiative (CRI), a multinational effort aimed at disrupting ransomware operations and dismantling cybercriminal networks.

The CRI brings together governments, law enforcement agencies, cybersecurity experts, and industry partners to coordinate and share information on ransomware threats and trends. The success of such initiatives hinges on nations’ willingness to collaborate and share intelligence and resources in the fight against cybercrime.

Taking inspiration from this, technology leaders in Malaysia have a crucial role in engaging with a synergistic nationwide platform. By collaborating with industry and government, they can swiftly and regularly share information and respond to data breaches, while also implementing proactive measures to protect corporate data, IT networks, and assets.

Strong cybersecurity is essential to Malaysia’s ambition of becoming a high-tech hub, as it safeguards critical infrastructure, economic stability, national security, and consumer trust. In this context, technology players can establish a robust foundation to support the nation’s technological and economic aspirations.

Also Read: Digital health: Malaysia leads in powering ASEAN’s transformation

Cloud and connectivity

Data centres play a central role in providing seamless connectivity and global content access to businesses. This connectivity is a critical enabler of innovation and data exchange across various sectors, driving growth and diversification within the economy. As a result, the stakes are high, and the margin for error is exceedingly thin – as businesses increase their number of communication points, the importance of keeping those communications with rapid connectivity and speed becomes even more critical.

Malaysia must therefore ensure that its connectivity reliability and uptime standards are among the highest, eliminating any possibility of latency. With the right technology and systems in place, the country can stand out as a reliable and efficient hub for technology, attracting greater business investment than its regional competitors.

Capacity and business continuity

Capacity, in the context of data centres, encompasses not just the physical number of racks but also the availability and scalability of power supply to support current and future demand. Water is another critical component as data centres require it to manage infrastructure temperatures of and prevent hardware overheating, necessitating 100 per cent uptime for cooling systems.

While space in Malaysia could be arguably abundant, the requirements for power and water resources to operate new data centres are substantial – hence any of such constraints require consideration and planning for continuity and contingency.

Ensuring operational continuity as a data centre hub hinge on several key factors: providing the host country with infrastructure support for the data centre and for the high-tech sector to ensure superior operating reliability, high-quality service, real-time visibility into operations, rapid communication, and seamless access.

Furthermore, the high-tech sector is governed by strict international standards and regulations regarding uptime, data management, and disaster recovery. Technology players must step forward to support Malaysia in delivering on the capacity and continuity strategy needed to meet these standards.

Delivering on a shared ambition

Malaysia’s data centre expansion can help to spearhead its ICT growth and attract more companies to setup their offices locally. Apart from the technology, bringing together a public-private sector partnership to deliver on a shared ambition, and leveraging support from expert service providers, will be crucial to accelerate the nation’s ambition.

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