Equinix Malaysia, the local arm of global data center operator Equinix, is evaluating alternative energy providers to mitigate the impact of a 14.2% electricity tariff increase set to take effect in July, the company said on Wednesday. The tariff hike is expected to significantly raise operational costs, especially for energy-intensive data center operations.
Cheam Tat Inn, managing director of Equinix Malaysia, stated during a media walkabout at the Cyberjaya data center—now completing its second phase—that the company is actively engaging with renewable energy providers, although specific sources and timelines have not been disclosed.
Equinix currently operates two facilities in Malaysia:
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Cyberjaya with a capacity of 4.8 megawatts (MW)
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Johor with 2.4 MW, which is fully subscribed following its launch in May 2023.
Cheam added that customer occupancy at the Cyberjaya site is rising rapidly, underscoring strong regional demand for digital infrastructure.
Malaysia is in the midst of a data center boom, with forecasts projecting a fourfold increase in facilities over the next decade from the current 18, collectively demanding over 800MW of electricity. The surge is largely driven by the growing demand for AI and cloud services, with tech giants such as Microsoft, Nvidia, Google, ByteDance, and Oracle investing billions in the country.
Equinix has also been aggressively expanding across Southeast Asia, acquiring three data centers in the Philippines last year and maintaining operations in Indonesia, Malaysia, and Singapore as it positions itself to tap into the region’s digital growth trajectory.