NEXTDC launches first overseas data centre in Kuala Lumpur

NEXTDC has launched its KL1 data centre in Kuala Lumpur, the Australian company's first facility outside its home market.

The site in Klang Valley is a long-term AUD$1 billion investment in Malaysia and is designed to deliver 65MW of IT capacity.

KL1 targets demand from artificial intelligence, cloud computing and other digital services across Southeast Asia. Built for AI and high-performance computing workloads, it is set to become the first Uptime Institute Tier IV-certified data centre in Peninsular Malaysia.

The launch marks a notable step in NEXTDC's strategy as it expands from an Australian operator into a broader regional infrastructure business. Malaysia has become a focal point for data centre investment in Asia as technology groups and enterprises seek more capacity, stronger connectivity and closer alignment with local data and regulatory requirements.

The Kuala Lumpur facility extends NEXTDC's model of linking customers with cloud providers, carriers and technology partners into Southeast Asia. The approach is intended to give businesses entering the region access to a wider network of services from a single site.

The company said businesses are under pressure to scale AI systems quickly while maintaining control over operations and governance. It said KL1 was built to meet those demands in a market where concerns around sovereignty, resilience and compliance are becoming more prominent.

Craig Scroggie, Chief Executive Officer and Managing Director of NEXTDC, described the project as part of a wider shift in digital infrastructure.

“We are in the Fourth Industrial Revolution, and AI is redefining the requirements of critical infrastructure. The challenge is no longer access to technology, but the ability to deploy it at speed, at scale, and within sovereign governance frameworks.

KL1 Kuala Lumpur has been purpose-built to meet the needs of the market, providing a high-performance, sovereign-ready environment where customers can run next-generation compute workloads with confidence. This is not only about entering a new market. It is about NEXTDC establishing infrastructure platforms in the locations where customers need to operate, connect and scale in the AI economy,” Scroggie said.

Malaysia push

The project also aligns with Malaysia's push to strengthen its position as a regional centre for digital infrastructure and AI-related investment. National and state leaders used the launch to underline the country's ambition to attract larger technology projects and related jobs.

“The launch of NEXTDC's KL1 facility is a significant milestone in our mission to establish Malaysia as the premier digital hub of Southeast Asia and a key driver of the regional AI economy. As we advance toward our AI Nation 2030, facilities such as KL1 are essential to provide the resilience, security and scale required for the next generation of cloud-driven innovation.

This RM2.8 billion (AUD$1 billion) investment not only reinforces global investor confidence in our digital ecosystem but also ensures that Malaysia remains at the forefront of the global value chain. The Ministry of Digital remains committed to supporting strategic partnerships that act as catalysts for high-value job creation, digital talent development and sustainable economic growth for all Malaysians,” said Gobind Singh Deo, Minister of Digital.

At the state level, Selangor presented the site as a landmark development for Petaling Jaya, where the facility is located.

“Since the groundbreaking ceremony on 9 June 2023, time has flashed by, and in just under three years, NEXTDC has given birth to KL1, the first Tier IV data centre in Malaysia, right in the heart of Petaling Jaya in Selangor. As Malaysia's first planned satellite town in the early 1950s, this marks the next chapter for Petaling Jaya and places the city on the global artificial intelligence map, representing an opportunity for large-scale businesses, financial institutions, critical industries and government operations to maximise the potential that a data centre of this magnitude can offer to society,” said Amirudin Shari, Chief Minister of Selangor.

Regional links

The investment also has broader significance for commercial links between Australia and Southeast Asia. Australia's diplomatic representation in Malaysia described the site as part of a wider pattern of Australian capital backing Malaysia's digital economy.

“NEXTDC, like many Australian companies, is a reliable and long-term investor in Malaysia, committed to building a sustainable digital economy sector in Malaysia, with Malaysia and for Malaysian customers.

NEXTDC's KL1 represents an approximately RM2.8 billion (A$1 billion) long-term investment in Malaysia's digital economy. A 65MW facility, KL1 provides strategic, energy-efficient and AI-ready infrastructure to support Malaysia's AI and high-performance computing customers.

The Australian Government is supporting investors like NEXTDC in Southeast Asia under Invested: Australia's Southeast Asia Economic Strategy to 2040,” said Danielle Heinecke, Australian High Commissioner to Malaysia.

KL1 opens as competition for data centre projects intensifies across Southeast Asia, with Malaysia, Singapore, Indonesia and Thailand all seeking to attract operators and cloud groups. Access to power, land, fibre links and regulatory clarity has become increasingly important as AI workloads increase computing and cooling demands.

For NEXTDC, the Kuala Lumpur launch provides an operating base in one of the region's busiest commercial corridors and a platform for customers looking to expand beyond Australia.