Equinix strengthens Malaysia footprint as JH2 reaches construction milestone

Equinix has topped out its second data center in Johor, part of a US$201 million project that will add 2,200 cabinets and 7.2MW of capacity by 2027.

Construction of Equinix's second data center in Johor has reached its topping-out stage, marking another step in the company's plan to expand its presence in Malaysia. Known as JH2, the site carries an investment of about US$201 million and is set to open in the third quarter of 2027 with capacity for more than 2,200 cabinets.

JH2 sits within the Johor–Singapore Special Economic Zone, an area gaining attention as a hub for data infrastructure. Once completed, the new facility will join JH1, which opened last year after an earlier US$40 million investment.

JH1 currently offers space for 500 cabinets across nearly 2,000 square meters. Together, the two facilities will form a connected campus serving Malaysia and nearby Singapore, where demand for data capacity continues to grow.

The first phase of JH2 is expected to deliver about 7.2 megawatts of power. Equinix is also in talks to buy more land that could eventually bring the Johor campus to 77 megawatts. The facility will include liquid cooling systems designed to handle dense computing workloads, including those tied to artificial intelligence.

Beyond Johor, Equinix operates the KL1 data center in Kuala Lumpur and is building another, KL2, in Cyberjaya. The second site is close to KL1 and will form a twin-campus setup, with operations planned to begin in early 2027. These two projects aim to boost Malaysia's position as a vital site for data center operators looking to expand into regional and global markets.

Malaysia's data center industry is rapidly expanding as cloud use, e-commerce, and cross-border services increase. Its proximity to Singapore has made it a desirable option for companies looking for more capacity at a lower cost, all while government initiatives continue to attract investment from major infrastructure providers.

Equinix's broader strategy includes a focus on sustainability. The company has set a goal of reaching climate neutrality by 2030 and is exploring renewable and alternative energy options to offset rising electricity costs in Malaysia. Earlier this year, it was reported that Equinix Malaysia was considering new energy sources following tariff adjustments that have affected local operators.

The completion of JH2's main structure signals progress toward a larger digital infrastructure plan for the region. When fully operational, the Johor and Kuala Lumpur campuses will give local and international businesses new options for data storage, connectivity, and AI-ready computing, helping Malaysia strengthen its position in Southeast Asia's digital economy.