Equinix to develop purpose-built IBX data centre in Kuala Lumpur to support Malaysia’s AI and cloud growth

• New facility to strengthen Malaysia’s position as a regional hub for AI and digital infrastructure
• Expansion reinforces Malaysia’s growing role as a regional digital infrastructure and connectivity hub

Equinix, a leading digital infrastructure company®, has announced plans to expand its presence in Malaysia with a new International Business Exchange™ (IBX®) data centre in Kuala Lumpur, reinforcing its long-term commitment to the country’s growing digital economy.

The facility reflects Equinix’s long-term commitment to Malaysia as demand for digital infrastructure accelerates across cloud, AI and enterprise workloads, supporting the country’s digital economy and the region’s growing connectivity needs.

Known as KL2, the facility will be located in Cyberjaya, less than one kilometre from Equinix’s existing KL1 data centre, strengthening the company’s growing ecosystem of network providers, cloud platforms and enterprises in Malaysia. KL2 marks Equinix’s fourth data centre in the country, adding to its Kuala Lumpur and Johor footprint, which includes the operational JH1 facility and upcoming JH2.

Representing a total investment of more than US$190 million (RM800 million), KL2 is expected to deliver more than 2,200 cabinets when fully built out.

The expansion comes amid growing demand for scalable, low-latency and highly interconnected digital infrastructure to support cloud, AI and enterprise workloads across Asean. Once operational, KL2 will provide a reliable platform for mission-critical workloads, enabling enterprises, hyperscalers and digital-native companies to scale efficiently, deploy distributed AI and hybrid multi-cloud architectures, and deliver faster digital experiences across the region.

The investment also comes at a pivotal time as Malaysia strengthens its position as a regional hub for digital and AI innovation, driven by national initiatives such as the National Artificial Intelligence Office (NAIO) and MyDigital.

Equinix said demand for digital infrastructure in Malaysia continues to accelerate, reflected in the strong commercial momentum of its existing Cyberjaya facility, KL1. More than two-thirds of KL1 customers operate across multiple metros, reflecting a growing shift towards integrated regional architectures spanning Kuala Lumpur, Johor and Singapore.

Cheam Tat Inn, managing director, Malaysia, Equinix, said the expansion represents an important milestone in supporting Malaysia’s digital ambitions and long-term economic growth.

“Beyond enabling AI-ready infrastructure, KL2 will help drive high-value job creation, strengthen long-term economic resilience and support the country’s AI ambitions,” he said.

Cheam added that KL2 will enable businesses to process data closer to the source and deploy distributed AI capabilities more efficiently across the region.

The facility will be integrated into Equinix’s global network and interconnected with its footprint across Kuala Lumpur, Johor and Singapore through Equinix Fabric®. Through Fabric Intelligence®, customers will gain AI-driven network insights to optimise routing and bandwidth, supporting the secure and efficient deployment of high-performance AI workloads and distributed data strategies across Asean.

Globally, Equinix operates more than 280 data centres across 77 markets in 36 countries, serving over 10,500 businesses. In Asia-Pacific, the company’s footprint spans 65 data centres across key markets including Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines and Singapore.

Highlights / Key Facts

• KL2 is designed to support a diverse mix of customers, ranging from retail enterprises to large-scale deployments and high-density workloads.
• A substantial portion of the facility’s capacity will support advanced liquid cooling technologies to meet the demands of next-generation AI and high-performance computing workloads.
• Equinix continues to expand its ecosystem of local and regional carriers and service providers in Malaysia, strengthening interconnection opportunities for customers.
• The development forms part of Equinix’s long-term expansion strategy in Malaysia, supported by adjacent land secured for future growth.
• Engineered in line with commitments outlined in the APDCA’s Sustainable Digital Infrastructure Accord, KL2 is targeting 100% renewable energy coverage from day one, aligned with Equinix’s global goal of achieving full renewable energy coverage across its retail IBX footprint by 2030.