- US$650 mil investment strengthens Malaysia’s position as a regional hub for AI and digital infrastructure
- KL1 facility designed to support next-generation AI, cloud and high-performance computing workloads across SEA
NEXTDC has officially launched KL1 Kuala Lumpur, its first international data centre, marking a major investment in Malaysia’s growing role as a regional hub for AI, cloud and digital infrastructure.
Located in Klang Valley, KL1 represents a US$650 million (RM2.8 billion) long-term investment and forms part of NEXTDC’s expansion into Southeast Asia as demand for AI, cloud computing and digital services continues to accelerate across the region.
Purpose-built to support next-generation AI and high-performance computing workloads, KL1 has been designed to deliver 65MW of IT capacity and incorporates NEXTDC’s Tier IV design principles. The facility is also set to become the first Uptime Institute Tier IV-certified data centre in Peninsular Malaysia, supporting high-density and mission-critical digital environments.
NEXTDC said KL1 has been engineered to provide organisations with a secure, high-performance environment to scale AI capabilities while maintaining operational resilience, compliance and control over critical digital infrastructure.
NEXTDC CEO and managing director Craig Scroggie said the launch reflects a broader structural shift in how digital infrastructure is being designed and deployed globally.
“We are in the Fourth Industrial Revolution, and AI is redefining the requirements of critical infrastructure,” he said.
“The challenge is no longer access to technology, but the ability to deploy it securely, at scale and within evolving regulatory and governance frameworks. KL1 Kuala Lumpur has been purpose-built to support organisations running next-generation compute workloads across the region,” he added.
KL1 extends NEXTDC’s ecosystem-led infrastructure model into Southeast Asia, enabling customers to access cloud providers, carriers and technology partners through a highly connected digital environment.
Malaysia is emerging as a strategic destination for digital infrastructure investment in Asia, supported by growing enterprise demand, AI adoption and government-led digital initiatives. Positioned at the centre of this ecosystem, KL1 provides a regional hub for organisations seeking to expand across Southeast Asia while maintaining control over data and regulatory requirements.
Beyond infrastructure, NEXTDC said KL1 is expected to support broader economic activity through digital ecosystem growth, investment attraction and technology workforce development.
Minister of Digital Gobind Singh Deo said the launch of KL1 represents another important milestone in Malaysia’s ambition to become a leading regional digital and AI hub.
“As we advance towards our AI Nation 2030 ambitions, infrastructure such as KL1 will play a critical role in providing the resilience, security and scale required for next-generation cloud and AI innovation,” he said.
“This US$650 million (RM2.8 billion) investment reinforces global confidence in Malaysia’s digital ecosystem while supporting high-value job creation, digital talent development and long-term economic growth,” he added.
Selangor chief minister Amirudin Shari said KL1 marks an important milestone for Petaling Jaya and Selangor as Malaysia strengthens its position in the global AI and digital infrastructure ecosystem.
Australian high commissioner to Malaysia Danielle Heinecke said NEXTDC’s investment reflects Australia’s long-term commitment to supporting Malaysia’s digital economy and Southeast Asia’s growing digital infrastructure ecosystem.
“KL1 provides strategic, energy-efficient and AI-ready infrastructure to support rising AI and high-performance computing demand across the region,” she said.
Meanwhile, MDEC CEO Anuar Fariz Fadzil said NEXTDC’s launch of KL1 Kuala Lumpur strengthens Malaysia’s position as a trusted regional hub for digital infrastructure and AI-driven growth.
“AI-ready infrastructure is becoming increasingly critical in meeting the evolving demands of businesses, cloud platforms and emerging technologies across the region,” he said.
“Through the Malaysia Digital national strategic initiative, MDEC remains committed to facilitating strategic digital investments that strengthen the nation’s digital ecosystem, create high-skilled opportunities and advance Malaysia’s aspirations towards becoming an AI Nation by 2030,” he added.
NEXTDC said its expansion into Malaysia also strengthens the broader Australia-Asia digital corridor, enabling Australian organisations to expand regionally with a trusted infrastructure partner while reinforcing Australia’s position as an exporter of high-performance digital infrastructure capabilities.
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