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Equinix Invests Over US$190 Million in New Kuala Lumpur Data Centre to Power Malaysia’s AI and Cloud Ambitions

Rebecca PY 5 seconds ago

Equinix has announced plans to build KL2, its fourth data centre in Malaysia, located in Cyberjaya with a total investment exceeding US$190 million and capacity for over 2,200 cabinets. The facility is designed to support AI workloads, hybrid multi-cloud deployments and enterprise digital infrastructure across the ASEAN region.


MALAYSIA, 15 MAY 2026 – Equinix, Inc., the world’s digital infrastructure company listed on Nasdaq, has announced the development of a new data centre in Cyberjaya, Kuala Lumpur, marking a significant expansion of its footprint in Malaysia as demand for AI-ready and cloud-connected infrastructure continues to accelerate across the region.

Designated KL2, the facility will be built less than one kilometre from Equinix’s existing Kuala Lumpur data centre, KL1, deepening the company’s interconnected ecosystem of network providers, cloud platforms and enterprise customers in the country. The new centre represents a total investment of over US$190 million and will deliver more than 2,200 cabinets at full buildout, making it Equinix’s fourth data centre in Malaysia alongside its Kuala Lumpur site and two Johor facilities, JH1 and the forthcoming JH2.

KL2 is engineered to serve a broad range of customers, from agile retail enterprises to large footprint deployments and high-density workloads. A substantial portion of its total capacity is dedicated to advanced liquid cooling solutions, addressing the rigorous thermal demands of next-generation distributed AI and high-performance computing workloads. Once operational, the facility will support digital-native companies, hyperscalers and multinational enterprises looking to scale efficiently and deploy distributed AI and hybrid multi-cloud architectures across ASEAN.

The expansion arrives at a strategically significant moment for Malaysia. The country is cementing its position as a central hub for digital and AI innovation in the region, supported by government initiatives including the newly launched National Artificial Intelligence Office and the MyDIGITAL agenda. The commercial momentum already evident at KL1 underscores this trajectory, with more than two-thirds of its customers operating across multiple metros, reflecting a broader regional shift toward integrated, cross-border digital architectures spanning Kuala Lumpur, Johor and Singapore.

KL2 will be fully integrated into Equinix’s global network and interconnected with its Malaysian and Singaporean facilities via Equinix Fabric. Customers will also have access to Fabric Intelligence, which delivers AI-driven network observability and dynamic routing optimisation to support high-performance workloads deployed across the region.

Cheam Tat Inn, Managing Director for Malaysia at Equinix, described KL2 as an important milestone in elevating Malaysia’s digital economy, noting that the facility will enable businesses to process data closer to the source, deploy distributed AI with greater agility and contribute to high-value job creation and long-term economic resilience for the nation.

On the sustainability front, KL2 is targeting 100% renewable energy coverage from its first day of operations, aligned with Equinix’s global commitment to achieve full renewable energy coverage across its retail data centre portfolio by 2030. The facility is also engineered to meet the sustainability standards set out in the Asia-Pacific Data Centre Association’s Sustainable Digital Infrastructure Accord.

Adjacent land has been secured to support future expansion at the site, reinforcing Kuala Lumpur’s long-term role as a key interconnection hub in ASEAN. Globally, Equinix operates over 280 data centres across 77 markets in 36 countries, serving more than 10,500 businesses worldwide.

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