Equinix Invests US$190 Million in Second Kuala Lumpur Data Center to Boost Malaysia’s Digital Economy
May 13, 2026
Equinix Invests US$190 Million in Second Kuala Lumpur Data Center to Boost Malaysia’s Digital Economy
Equinix, the global data center and interconnection leader, has announced plans to build a second facility in the Kuala Lumpur area, marking a significant step in its expansion across Malaysia. The new data center, named KL2, will be located in Cyberjaya, less than one kilometer from the company’s existing KL1 facility, and represents an investment of more than US$190 million.
When fully built, KL2 will provide over 2,200 cabinets, making it Equinix’s fourth data center in Malaysia. The company’s local portfolio already includes KL1 in Kuala Lumpur, JH1 in Johor, and the planned JH2 facility. The strategic proximity of KL2 to KL1 is intended to expand Equinix’s local ecosystem of network providers, cloud platforms, and enterprise customers, while also strengthening its partner network with local and regional carriers and service providers.
The facility is being developed to support a range of high-demand workloads, including cloud, artificial intelligence (AI), enterprise, and high-density computing. Once operational, KL2 is expected to handle mission-critical applications for enterprises, hyperscalers, and digital-native companies. A portion of its capacity will be equipped with liquid cooling technology, essential for managing heat from dense computing systems such as AI and high-performance computing infrastructure. The site is designed for a mix of deployments, including retail enterprises, larger-footprint customers, and high-density computing environments.
Equinix linked the KL2 investment to Malaysia’s broader digital policy agenda, which includes initiatives like MyDIGITAL and the National Artificial Intelligence Office. The company emphasized that the facility supports Malaysia’s role in advancing digital and AI-related infrastructure across the ASEAN region. According to Equinix, KL1 has attracted a diverse customer base across network, enterprise, cloud, and IT services segments since its launch, with more than two-thirds of its direct customers operating across multiple metropolitan markets.
KL2 will be connected to Equinix’s wider footprint across Kuala Lumpur, Johor, and Singapore through Equinix Fabric, the company’s software-defined interconnection service. This connectivity will support hybrid multi-cloud deployments and distributed data strategies across ASEAN. Customers will also have access to Fabric Intelligence for network observability and routing insights across distributed environments, providing routing and bandwidth visibility for regional deployments.
Cheam Tat Inn, managing director for Malaysia at Equinix, stated that KL2 is designed to support Malaysia’s digital economy and AI ambitions by enabling businesses to process data closer to where it is generated. Equinix has also secured adjacent land for future growth in Kuala Lumpur, signaling long-term commitment to the region.
From an environmental perspective, KL2 is expected to achieve 100% renewable energy coverage from its first day of operation, aligning with Equinix’s global target of reaching 100% renewable energy across its retail International Business Exchange footprint by 2030. The facility is being engineered in line with commitments under the Asia-Pacific Data Centre Association’s Sustainable Digital Infrastructure Accord, though the company did not provide specific efficiency metrics.
Globally, Equinix operates more than 280 data centers across 77 markets in 36 countries. Its Asia-Pacific portfolio includes 65 data centers across markets such as Malaysia, Singapore, Indonesia, India, Japan, Korea, Australia, and the Philippines, as well as five data centers in Shanghai through a strategic partnership. The KL2 project underscores Equinix’s strategy to deepen its presence in high-growth digital economies across the region.
Source: crnasia
