Constructed by Shenzhen CIMC Construction Co Ltd — a unit of China International Marine Containers (Group) Co Ltd — the "Malaysia 2312" ultra-large data center built with modular integrated construction (MiC) method started operations recently in Johor, marking a milestone globally in information technology infrastructure construction, CIMC Construction said.

Covering 240,000 square meters, the data center project, which consists of three buildings, was delivered to customers in November.

It integrates functions such as big data processing, computing power support, cloud computing services and high-efficiency information management to provide strong infrastructure support for data processing business, which could significantly enhance safe storage and high-efficiency processing capability of data.

The first and second buildings are already operational, while the third building will be put into operation in the near future, the company said.

"The successful operation of the modular data center once again demonstrates the value of modular construction in the building of large-scale data centers," said You Deqiang, general manager of CIMC Construction.

MiC is an innovative approach to construction that involves assembling buildings using prefabricated modules or components that are manufactured off-site and then transported to the construction site for final assembly.

Data center projects in Malaysia normally take 18 months to be completed using traditional construction methods. With the MiC, it took the builder less than a year and brought many benefits, such as improved efficiency, the company said.

The development comes as a growing number of Chinese technology companies are building data centers overseas to provide IT support for the expansion of overseas business among Chinese enterprises.

For example, Alibaba Cloud, the cloud computing unit of Chinese tech giant Alibaba, said earlier this year that it would build new data centers in five countries — South Korea, Malaysia, the Philippines, Thailand and Mexico.

Many enterprises choose to build data centers in Southeast Asia as the digital economy in the region has seen significant growth in recent years.

According to a report by global consultancy Research and Markets, the market value of data centers in Southeast Asia is projected to expand from $9.68 billion in 2022 to $14.19 billion by 2028, representing a compound annual growth rate of 6.57 percent over the period.

Malaysia has emerged as a preferred destination in the region. A separate report by the consulting firm shows that the size of data centers in Malaysia is expected to grow from $1.31 billion in 2022 to $2.25 billion by 2028, or an annual growth rate of 9.4 percent.