KAG eyes more jobs to build data centres
KUALA LUMPUR: Key Alliance Group Bhd (KAG) , which aims to launch e-commerce businesses in the Digital Free Trade Zone (DFTZ) in collaboration with Alibaba reseller RapidCloud, may secure more jobs to build data centres in Selangor.
Sources said the company might win two contracts worth RM50 million in the current quarter to construct and manage data centres.
Last week, KAG received a letter of award from Avenue Escapade Sdn Bhd (AESB) to design, build and manage a data centre in Petaling Jaya.
The RM24.74 million contract will see KAG’s wholly-owned unit, DVM Innovate Sdn Bhd, deploy and manage the data centre infrastructure at Persoft Tower in Persiaran Tropicana, Petaling Jaya.
AESB owns the majority of Persoft Tower (previously Menara Luxor).
KAG said the deployment works were expected to take 15 months to complete.
According to the Malaysia Digital Economy Corp, the data centre market was expanding rapidly and had the potential to record US$224 million (RM981 million) in revenue this year.
There are currently 500,000 sq ft of data centre space in Malaysia and it is estimated to exceed five million sq ft by 2020.
The DFTZ, meanwhile, is a brain child of Prime Minister Datuk Seri Najib Razak.
Last month, Najib signed a memorandum of understanding with Alibaba founder Jack Ma to launch the world’s first DFTZ in Malaysia.
The trade zone will likely boost ecommerce growth in the country to 20.8 per cent by 2020 from 10.8 per cent currently, and increase gross domestic product contribution to RM211 billion over the same period.
It is also estimated to support US$65 billion worth of goods moving through DFTZ, and create 60,000 direct and indirect jobs by 2025.
KAG told Bursa Malaysia yesterday that DVM Innovate had made an offer to acquire RapidCloud, a unit of Rapidcloud International Plc, which provides cloud-based building blocks for its clients to create and manage powerful business solutions online. Sharen Kaur
potential revenue from local data centre
market in 2017