NEXTDC launched its first Southeast Asia data centre in Kuala Lumpur

• NEXTDC launched KL1 Kuala Lumpur, its first Southeast Asia data centre.
• KL1 opens as Malaysia’s data centre market expands.

NEXTDC has launched KL1 Kuala Lumpur, its first data centre in Southeast Asia.

The facility is located in Klang Valley, Malaysia’s main business and technology hub. NEXTDC said KL1 represents a long-term investment of AUD$1 billion, or about RM2.8 billion.

Malaysia’s data centre investment pipeline

Malaysia approved RM144.4 billion in data centre and cloud computing investments between 2021 and mid-2025, according to the Malaysian Investment Development Authority.

KL1 has been designed to deliver 65MW of IT capacity. The company said the facility follows its Tier IV design principles. NEXTDC said KL1 is expected to become the first Uptime Institute Tier IV-certified data centre in Peninsular Malaysia.

NEXTDC said KL1 is intended to support organisations running cloud and AI workloads in Malaysia and the wider region. The company said the facility is also aimed at customers with data control and regulatory requirements.

The Department of Statistics Malaysia said ICT and e-commerce contributed RM451.3 billion, or 23.4%, to the country’s economy in 2024.

Power infrastructure and data centres

Reuters reported in June 2025 that Tenaga Nasional would invest RM43 billion to upgrade the national electricity grid. The report said AI, data centres, and battery energy storage were among the areas expected to require additional capacity. Malaysia is expected to add 6GW to 8GW of gas-fired power capacity by 2030. The report said the additional capacity was linked to higher electricity consumption from data centres.

Chief executive officer and managing director Craig Scroggie linked the project to AI infrastructure requirements. “We are in the fourth industrial revolution, and AI is redefining the requirements of critical infrastructure,” Scroggie said. “The challenge is not access to technology, but the ability to deploy it at speed, at scale, and in sovereign governance frameworks.”

KL1 was built to support customers running next-generation compute workloads in Malaysia, according to Scroggie. He said the launch was part of NEXTDC’s plan to establish infrastructure platforms in markets where its customers operate.

Digital Minister Gobind Singh Deo said KL1 supports Malaysia’s ambition to become a digital hub for Southeast Asia. Gobind said facilities like KL1 are needed to support cloud-based services and AI workloads. He cited resilience and scale as important requirements.

The RM2.8 billion investment reflects investor confidence in Malaysia’s digital economy, according to Gobind. He said the Ministry of Digital would continue supporting partnerships tied to job creation and digital talent development.

Selangor Chief Minister Amirudin Shari said KL1’s development followed its groundbreaking ceremony on June 9, 2023. Amirudin said the facility adds to Petaling Jaya’s digital infrastructure base.

Regional data centre activity

Other operators have also announced data centre investments in Malaysia. Reuters reported this month that Equinix would invest more than US$190 million in a fourth Kuala Lumpur data centre.

The Equinix facility is designed for more than 2,200 cabinets. It will also include liquid cooling for AI and high-performance computing workloads.

Australian investment context

Australian High Commissioner to Malaysia Danielle Heinecke said NEXTDC’s investment forms part of Australia’s broader economic ties with Malaysia. She said KL1 provides energy-efficient and AI-ready infrastructure for AI and high-performance computing customers in the country.

NEXTDC said the facility will allow Australian organisations to expand regional operations using infrastructure based in Malaysia.

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