NEXTDC Limited, Australia’s leading data centre as a service provider, has announced its entry into the Malaysian market with its first data centre development in Kuala Lumpur. The new data centre, named KL1, will be a world-class facility located in the heart of the Klang Valley metropolitan region. It is strategically positioned in Petaling Jaya, less than 10km from Kuala Lumpur, with easy access to major network and business hubs.
KL1 will be the first Uptime Institute Tier IV certified data centre facility in Peninsular Malaysia, showcasing its high standards of reliability and resilience. The facility is designed to scale rapidly, offering approximately 65MW of IT critical power and direct cloud interconnectivity. It is scheduled to welcome customers from 2025.
The decision to enter Malaysia reflects NEXTDC’s focus on expanding into Asia, targeting one of the region’s fastest-growing data centre markets. Malaysia’s increasing demand for quality data centre solutions, a sophisticated digital economy, high data consumption per capita, and rising adoption of cloud-based technologies make it an attractive market for NEXTDC’s entry into Asia.
NEXTDC plans to leverage its existing ecosystem of over 750 technology partners, including global hyperscale customers, to market its services in KL1. The company also aims to attract enterprise and government customers in Malaysia, capitalizing on the country’s growing reputation as a premier data centre investment destination.
In addition to the data centre investment, NEXTDC will establish a Regional Operations Center in Malaysia to support its growth across the Asian region. This move positions Malaysia as a regional hub for NEXTDC’s expansion into Asia, with potential future investments and opportunities in other Asian economies experiencing similar digital growth.
Over the next 5 to 10 years, NEXTDC plans to invest approximately RM3 billion in Malaysia. The company is committed to supporting Malaysia’s ICT and digital workforce through digital skilling and educational initiatives, aiming to enhance the country’s competitive advantage in Asia.
The Malaysian government, represented by Yang Berhormat Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI), and Yang Berhormat Tuan Ahmad Fahmi Bin Mohamed Fadzil, Minister of Communications and Digital, expressed their support for NEXTDC’s investment in Malaysia. They highlighted the country’s favorable investment ecosystem, stable political environment, robust digital infrastructure, and position as a preferred digital hub in Southeast Asia.
The launch of NEXTDC’s Malaysian operations marks a significant milestone in Malaysia’s digital infrastructure development and ongoing digital transformation. The Australian High Commissioner to Malaysia, His Excellency Dr Justin Lee, also emphasized the strong economic partnership between Australia and Malaysia, with digital economy cooperation being a priority.
CEO of NEXTDC, Craig Scroggie, highlighted the company’s excitement about entering the Malaysian market and making strategic investments in the Malaysian digital economy. He emphasized the sustainability benchmarks and critical infrastructure standards of the KL1 facility, which will shape the future of digital infrastructure and create job opportunities in Malaysia and beyond.
Through its entry into Malaysia, NEXTDC aims to contribute to Malaysia’s digital ecosystem, strengthen its position as a premier data centre destination, and support the country’s digital economy ambitions.
12 June 2023
