NEXTDC Limited has officially launched its first international data centre in Malaysia, marking a long-term investment of A$1 billion (RM2.8 billion) as the company expands deeper into Southeast Asia’s fast-growing artificial intelligence (AI) and cloud computing market.
The new KL1 Kuala Lumpur facility, located in the Klang Valley, is designed to support next-generation AI and high-performance computing workloads with 65MW of IT capacity.
The company said the facility is expected to become Peninsular Malaysia’s first Uptime Institute Tier IV-certified data centre.
NEXTDC Chief Executive Officer Craig Scroggie said the launch reflects a structural shift in global digital infrastructure demand driven by the rapid rise of AI adoption.
He said KL1 was purpose-built to provide a “high-performance, sovereign-ready environment” that enables organisations to scale AI operations securely while meeting governance and regulatory requirements.
The facility extends NEXTDC’s ecosystem-led infrastructure model into Southeast Asia, allowing customers to access cloud providers, carriers and digital platforms through a single integrated hub.
Malaysia’s growing prominence as a regional digital infrastructure destination, supported by government-led AI initiatives and rising enterprise demand, was a key factor behind the investment, the company said.
Digital Minister Gobind Singh Deo described the project as a major milestone in Malaysia’s ambition to become Southeast Asia’s leading digital and AI hub under the AI Nation 2030 agenda.
Selangor Menteri Besar Datuk Seri Amirudin Shari said the facility places Petaling Jaya “on the global AI map” and creates opportunities for large-scale businesses, financial institutions and government operations.
The launch also strengthens the broader Australia-Asia digital corridor, with Australian High Commissioner to Malaysia Danielle Heinecke describing NEXTDC as a long-term investor committed to supporting Malaysia’s digital economy growth.
