Mah Sing launches Mah Sing DC Hub@ Southville City with Bridge Data Centres - MIDA | Malaysian Investment Development Authority
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Mah Sing launches Mah Sing DC Hub@ Southville City with Bridge Data Centres

Mah Sing launches Mah Sing DC Hub@ Southville City with Bridge Data Centres

10 Jun 2024

Mah Sing Group Berhad (Mah Sing) celebrates a significant milestone with its maiden entry into the data centre sector, launching Mah Sing DC Hub@Southville City, with its first partner Bridge Data Centres (BDC), a company primarily owned by Bain Capital. The momentous occasion was witnessed by the Deputy Prime Minister of Malaysia cum Minister of Energy Transition and Water Transformation (PETRA), Yang Amat Berhormat Dato Sri Haji Fadillah bin Haji Yusof at the signing of a landmark collaboration agreement between Mah Sing and BDC.

Mah Sing Group has earmarked 150acres of land bank at Southville City, its 428-acre integrated freehold township, for further expansion into a leading Data Centre Hub with planned capacity of up to 500MW. While this is Mah Sing’s initial venture into the data centre sector, the collaboration with BDC on the initial 17.55 acres of land for a data centre with planned capacity of up to 100MW is just the beginning. Mah Sing envisions Mah Sing DC Hub@Southville City as a holistic digital infrastructure ecosystem, meticulously designed to accommodate the demands of AI, hyperscale, retail, and enterprise service providers.

Mah Sing DC Hub@Southville City forms a strategic triangle of data centre hubs with Cyberjaya and Bukit Jalil, both approximately 20km away.

Mah Sing DC Hub@Southville City is less than 50km from Telekom Malaysia’s (TM) upcoming new cable landing station in Morib, Selangor for the SEA-ME-WE-6 submarine cable system which will provide TM with one of the lowest latency routes connecting Malaysia with the rest of the world. With this proximity, Mah Sing DC Hub@Southville City will be able to provide dark fiber network for the data centre hub. Expected to be completed in the first quarter of 2025, TM’s Morib landing station will be a key landing site for Malaysia. Mah Sing DC Hub@Southville City’s locational advantage is compounded by the 20km proximity to the existing data centre hubs of both Cyberjaya and Bukit Jalil, creating a strategic triangle of data centre hubs.

Consequently, Mah Sing DC Hub is poised to attract a diverse clientele, including leading technology corporations, telecommunication giants, and prominent financial institutions. This strategic move underscores Mah Sing’s commitment to enhancing Malaysia’s digital infrastructure, further driving technological innovation and economic growth in the region.

Deputy Prime Minister Dato’ Sri Fadillah Yusof praised the venture stating, “This joint venture initiative between Mah Sing and BDC aligns with Malaysia’s digital transformation agenda and economic growth, reinforcing the nation’s position as a prime location for data centre investment in the Asia Pacific region. It also reflects the strong confidence and trust that investors have in our strategic and supportive environment. The establishment of a cutting-edge data centre in Southville City will meet the growing demand for digital infrastructure, positioning Malaysia as the digital hub of ASEAN. Our government’s proactive policies and incentives, such as the establishment of a smart grid and the push for renewable energy, further strengthen this initiative. By fostering innovation and creating substantial economic opportunities, this project will accelerate our progress towards becoming a high-income nation and solidify our standing as a leading digital economy in the region.”

Eric Fan, President of Bridge Data Centres expressed confidence in the collaboration, “We are delighted that our expansion journey in Malaysia has yielded strong results due to the accelerated demand for quality and scalable data centres. We believe the comprehensive approach provided by Mah Sing will ensure that the data centre will meet all regulatory requirements and be built to the highest standards, facilitating the creation of a state-of-the-art data centre. With Southville City’s locational advantage for data centres, we are confident of end users’ interest. We can harness Malaysia’s superior infrastructure, skilled workforce, and prime geographic location to offer top-tier data centre services. This initiative not only boosts our operational capabilities but also highlights Malaysia’s increasing significance as a digital hub in the Asia Pacific region.”

Tan Sri Dato’ Sri Leong Hoy Kum emphasising the strategic importance of the project said, “Southville City is an ideal location for a data centre hub, strategically positioned in a triangle with Bukit Jalil and Cyberjaya. This placement makes the region a central force in Malaysia’s digital transformation and technological advancement. This venture marks a strategic shift for Mah Sing, diversifying our revenue streams beyond property development which currently covers landed and high-rise residences, townships, offices, retail spaces and an increasing focus on industrial projects. Entering the data centre market allows the Group to establish recurring income, crucial for a more resilient financial foundation amidst market fluctuations. This emphasis on expanding recurring income aims to build a sustainable and recession-resistant business model, mitigating risks associated with property development cyclicality.

Beyond Southville City, Mah Sing’s other landbanks, such as MSS Business Park in Sepang, Selangor, which is also close to TM’s upcoming new cable landing station in Morib, present potential for similar data centre collaborations. This expansion underscores our commitment to leveraging our assets for long-term growth and recurring income opportunities. As we continue to innovate in property development and expanding our footprint in the data centre industry, we are exploring the immense opportunity of artificial intelligence and IOT to enhance our business and deliver value to our stakeholders.”

About Southville City

Strategically located just 19 kilometres from Kuala Lumpur City Centre, Southville City is a mature township with the essential infrastructure to support this major development. The collaboration between Mah Sing and Bridge Data Centres not only elevates Southville City’s profile as a modern, technologically advanced hub but also signifies a pivotal moment in Malaysia’s digital economy journey. This partnership will attract further investments, create job opportunities, and drive the overall growth of Southville City as a vibrant high-tech and business centre.

Source: The Edge Malaysia