NEXTDC’s RM2.8 Billion Investment Boosts Malaysia’s Ambition As Regional AI Hub
PETALING JAYA: NEXTDC has launched its KL1 Kuala Lumpur data centre as a strategic move to strengthen Malaysia’s position within the regional digital economy and artificial intelligence (AI) industry through a long-term investment worth AUD$1 billion, or approximately RM2.8 billion.
The facility marks NEXTDC’s first international data centre in Southeast Asia and was developed to meet rising demand for cloud computing, AI applications and high-performance digital infrastructure.
KL1 Kuala Lumpur was designed with a 65-megawatt (MW) information technology capacity based on a Tier IV architecture that delivers high levels of operational security, resilience and energy efficiency.
Digital Minister Gobind Singh Deo said the investment reflects growing confidence among global technology players in Malaysia’s potential as a leading destination for digital infrastructure development in the region.
According to him, facilities such as KL1 are essential in supporting the nation’s AI Nation 2030 agenda, which requires resilient digital systems capable of handling next-generation technology operations.
“This investment not only benefits the country’s digital economy but also creates high-skilled job opportunities and accelerates the development of local technology talent,” he said during the launch ceremony.
He added that the government will continue encouraging strategic collaborations with global industry players to ensure Malaysia remains competitive in the digital economy and AI sectors.
KL1 is expected to become the first data centre in Peninsular Malaysia to receive Tier IV certification from Uptime Institute, enabling it to support mission-critical digital operations that require extremely high reliability.
The facility was also designed to support AI-driven workloads and modern computing environments that demand uninterrupted operations.
Meanwhile, Selangor Menteri Besar Amirudin Shari said the successful completion of KL1 in less than three years demonstrates Selangor’s capability to attract high-value international technology investments.
He said the launch of the data centre also elevates Petaling Jaya’s position as an important city within the global AI and technology ecosystem.
According to him, the facility is expected to benefit various sectors including financial institutions, multinational corporations, strategic industries and government agencies requiring high-performance digital infrastructure.
NEXTDC chief executive officer and managing director Craig Scroggie said KL1 was developed to provide a modern digital platform capable of supporting customer needs in the evolving AI economy.
He added that NEXTDC is also exploring the development of KL2 Kuala Lumpur as the next phase of expansion, with further announcements expected within the next six months.
-wilayah.com.my
