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14 Jun 2023

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Malaysia Signs with IDCA on Green Data Centers to Boost Nation's Digital Economy

Malaysia Digital Economy Corp. Sdn. Bhd. (MDEC) has signed a digital economy alliance with IDCA. On June 13th, 2023 a strategic Memorandum of Understanding (MOU) between MDEC and the International Data Center Authority (IDCA) was signed to empower, enable, and help drive further development of Malaysia's Digital Economy, and establish the country as a key global destination for digital investment.

The agreement outlines a vision to develop Malaysia as the ASEAN region's highly modernized, green data center and cloud infrastructure hub, as the country progresses toward its goals to reduce its carbon footprint significantly by 2030 and reach net-zero emissions by 2050.

Activities covered by the cooperation include devising and developing a robust and nationwide Green Data Center and Digital Hub Blueprint for the nation that can foster innovation, harbor safety and security, and data sovereignty, minimize carbon footprint, create high-paying jobs, and attract local and foreign investment. Within this scope, both parties will be organizing a joint IDCA-MDEC Green Data Center Summit in the country, to announce Malaysia’s plans for becoming a digital innovation and data hub to exchange ideas with prominent digital infrastructure leaders around the globe.

“IDCA looks forward to working with MDEC to develop a truly digital economy that is based on sustainable digital infrastructure, namely green data centers, to boost the nation’s capabilities and competitive edge, as part of the country's commitment to a net-zero carbon emissions footprint, and to attract more direct and indirect investment to Malaysia,” said Mehdi Paryavi, IDCA Chairman and CEO.

“MDEC has led Malaysia's migration toward a Digital Economy since it was established by the Malaysian government in 1996,” said Mahadhir Aziz, MDEC CEO. “We have catalyzed the nation's digital transformation and growth since that time. Working with IDCA enables us to accelerate Malaysia's nationwide progress, bolster its status as ASEAN's digital hub, and open new doors that lead to prosperity for all Malaysians.”

In addition to driving toward its net-zero goals, the Malaysian government's Digital Economy Blueprint plans call for a 30% uplift in economic productivity across all sectors by 2030, all households to have Internet access, creation of half a million new jobs, and 80% usage of cloud storage throughout the government, and for 100% of its civil servants to possess digital literacy.

“Malaysia has followed an ambitious itinerary in its Digital Transformation journey,” added Paryavi to his remarks. “IDCA brings additional insights and goals to the country's vision and project execution abilities, as we work with MDEC to bring Malaysia into the world's most highly developed economies.”

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