Equinix Malaysia achieves 100% renewable energy coverage

CYBERJAYA: Equinix Malaysia has achieved 100% renewable energy sourcing for its local operations through International Renewable Energy Certificates (I-RECs) and is exploring power purchase agreements (PPAs) with local renewable energy providers as part of its long-term sustainability strategy.
Managing director Cheam Tat Inn (pic) said Equinix’s global operations currently achieve 96% renewable energy coverage, while Malaysia’s operations are fully covered through I-RECs.
“Right now, 100% are sourcing for renewable energy through IREC, International Renewable Energy Certificate. So we are 100% covered by IREC,” he told a media briefing yesterday.
While Equinix currently achieves full renewable energy coverage through I-RECs, the PPAs would allow it to diversify its renewable energy procurement strategy by sourcing electricity directly from local producers under long-term arrangements.
Cheam said Equinix is currently evaluating several renewable energy providers as it explores direct renewable procurement arrangements for its Malaysian operations.
“But in terms of growing responsibly within Malaysia, we are currently talking to a number of renewable energy suppliers to explore the possibilities of signing our purchase agreements with them,” he said.
He said Equinix adopts a long-term approach when assessing potential renewable energy partners given the lengthy investment cycle of the data centre industry.
“So we look at the long-term aspect of the company, look at the financial strengths of the company. We look at their ability to scale, not just an immediate requirement, but ability to scale,” he said.
Cheam said Equinix evaluates renewable energy providers across multiple criteria before making any commitment.
“It’s not something that we would just tick all the boxes and make a decision. There’s a lot of factors we consider when we look at these companies,” he said.
He noted direct renewable procurement through PPAs remains part of Equinix’s long-term plans for Malaysia.
“It’s certainly in our plan to ensure that we sign off with local renewable energy providers for PPAs for our local operations,” he emphasised.
Cheam said the focus on renewable energy comes as artificial intelligence rapidly reshapes demand for digital infrastructure and electricity consumption.
“For Equinix, more than 80% of our deployments currently are AI related,” he added.
Cheam said Johor is increasingly emerging as a regional AI hub due to its concentration of hyperscale facilities, artificial intelligence-ready infrastructure and close proximity to Singapore.
“I think as an industry-wide, Johor is evolving into, I would say, Johor today is kind of like the AI hub in the region,” he remarked.
“So where there’s lots of hyperscale capacity, lots of AI-ready infrastructure, with very close proximity to Singapore. So that gives you the regional interconnection that you need.”
“The low latency to a very established digital ecosystem in Singapore,” he added.
As part of its sustainability commitments, Cheam said Equinix is reducing potable water consumption, avoiding evaporative cooling technologies and evaluating alternative water sources to align with evolving water management requirements in Johor.
Equinix is targeting a power usage effectiveness (PUE) ratio of 1.33 by 2030.
While Cheam did not disclose Equinix Malaysia’s current PUE and water usage effectiveness (WUE) figures, he said all of Equinix’s local data centres comply with regulatory requirements set by the authorities and the Data Centre Task Force (DCTF).
“I don’t have the offhand number, but in order for us to be approved, you have to meet those numbers that they set,” he said.
Cheam said its sustainability strategy aligns with Malaysia’s National Energy Transition Roadmap target of achieving a 70% renewable energy mix, water management requirements and the country’s artificial intelligence governance framework.
It is reducing reliance on potable water and avoiding evaporative cooling technologies while evaluating alternative water sources, said Cheam.
Equinix announced that it is investing more than US$190 million (RM800 million) in its KL2 facility in Cyberjaya.
The facility will incorporate direct-to-chip liquid cooling technology designed to support high-density AI workloads while reducing electricity consumption and water use as demand for infrastructure continues to accelerate.