NEXTDC Launches KL1 in Kuala Lumpur, Marking Its First International AI-Ready Data Centre
May 14, 2026
NEXTDC Launches KL1 in Kuala Lumpur, Marking Its First International AI-Ready Data Centre
NEXTDC Limited (ASX: NXT), Australia’s leading digital infrastructure provider, has officially opened KL1 Kuala Lumpur, its first international data centre. The facility, located in the Klang Valley, represents a AUD$1 billion (approximately RM2.8 billion) long-term investment and signals the company’s strategic expansion from a national player into a regional provider of mission-critical infrastructure across Southeast Asia.
Purpose-built for next-generation artificial intelligence and high-performance computing, KL1 is designed to deliver 65MW of IT capacity. It incorporates NEXTDC’s globally recognised Tier IV design principles and is set to become the first Uptime Institute Tier IV-certified data centre in Peninsular Malaysia. The facility is engineered to support the high-density, always-on environments required for AI and advanced digital workloads, addressing a growing market demand for infrastructure that balances rapid scalability with resilience and governance.
“We are in the Fourth Industrial Revolution, and AI is redefining the requirements of critical infrastructure. The challenge is no longer access to technology, but the ability to deploy it at speed, at scale, and within sovereign governance frameworks,” said Craig Scroggie, CEO and Managing Director of NEXTDC. “KL1 Kuala Lumpur has been purpose-built to meet the needs of the market — providing a high-performance, sovereign-ready environment where customers can run next-generation compute workloads with confidence. This is not only about entering a new market. It is about NEXTDC establishing infrastructure platforms in the locations where customers need to operate, connect and scale in the AI economy.”
KL1 extends NEXTDC’s AI-ready, ecosystem-led model into Southeast Asia, giving customers access to a broad network of cloud providers, carriers and technology alliances. This approach reduces complexity for organisations expanding into the region, providing immediate connectivity and services critical for digital transformation. Malaysia, supported by strong economic growth and government-led initiatives to accelerate AI adoption, is emerging as a strategic destination for digital infrastructure investment in Asia. KL1 positions itself as a natural hub for organisations seeking to operate across the region while maintaining control over data and regulatory requirements.
Beyond infrastructure, the facility is expected to act as a catalyst for broader economic activity. Malaysia’s Minister of Digital, Gobind Singh Deo, stated, “The launch of NEXTDC’s KL1 facility is a significant milestone in our mission to establish Malaysia as the premier digital hub of Southeast Asia and a key driver of the regional AI economy. This RM2.8 billion investment not only reinforces global investor confidence in our digital ecosystem but also ensures that Malaysia remains at the forefront of the global value chain.” YAB Dato’ Seri Amirudin Shari, Chief Minister of Selangor, noted that KL1 places Petaling Jaya on the global artificial intelligence map, representing an opportunity for large-scale businesses, financial institutions, and government operations. Australian High Commissioner to Malaysia Danielle Heinecke added that NEXTDC is a reliable, long-term investor committed to building a sustainable digital economy sector in Malaysia. MDEC CEO Anuar Fariz Fadzil emphasised that AI-ready infrastructure is increasingly critical for meeting evolving business demands, and that the Malaysia Digital national strategic initiative remains committed to facilitating investments that advance the nation’s goal of becoming an AI Nation by 2030.
The launch also strengthens the broader Australia–Asia digital corridor, enabling Australian organisations to expand in the region with a trusted infrastructure partner while reinforcing Australia’s position as an exporter of high-performance, sovereign-grade digital infrastructure capability.
Source: nextdc
