Australia-based NEXTDC has opened a USD 720 million data centre in Malaysia, marking the company’s first international expansion. The KL1 Kuala Lumpur facility is located in the Klang Valley technology corridor and has been developed to support rising demand for AI infrastructure, cloud services and high-performance computing capacity in Southeast Asia.
The facility is designed to support AI and high-performance computing workloads and will provide up to 65 MW of IT capacity once fully operational. Built to Tier IV standards, the data centre is intended to deliver high resiliency and uptime for mission-critical digital infrastructure applications. The project forms part of growing regional investment in hyperscale data centres, cloud computing and AI infrastructure across markets including Malaysia, Singapore, Thailand and Indonesia.
Malaysia has emerged as a major destination for data centre investment as technology firms seek alternatives to Singapore amid land and power constraints. Malaysian authorities have identified AI and digital infrastructure as key components of the country’s economic development strategy, with the project expected to strengthen Malaysia’s position as a regional digital hub while also expanding digital connectivity and investment links between Australia and Southeast Asia.