NEXTDC has launched KL1 Kuala Lumpur, its first data center outside Australia, marking the company’s entry into Southeast Asia.
The facility is located in the Klang Valley, Malaysia’s main commercial and technology region. NEXTDC said KL1 represents a long-term investment of AUD$1 billion.
KL1 is designed to provide 65MW of IT capacity. The company said the site uses its Tier IV design principles and is set to become the first Uptime Institute Tier IV-certified data center in Peninsular Malaysia.
The facility will support artificial intelligence, high-performance computing, cloud, and other digital workloads. These workloads require high-density power, resilient infrastructure, and continuous availability.
NEXTDC said KL1 gives customers access to cloud providers, carriers, and technology partners through its ecosystem model. The company said the site is intended to support organizations operating across Southeast Asia with access to connectivity and digital infrastructure services.
NEXTDC Chief Executive Officer and Managing Director Craig Scroggie said AI is changing the infrastructure requirements for critical digital systems.
“We are in the Fourth Industrial Revolution, and AI is redefining the requirements of critical infrastructure,” Scroggie said. “The challenge is no longer access to technology, but the ability to deploy it at speed, at scale, and within sovereign governance frameworks.”
CRN Answers
Scroggie said KL1 was built to provide a “high-performance, sovereign-ready environment” for next-generation compute workloads. He said the launch forms part of NEXTDC’s plan to build infrastructure platforms in markets where its customers need to operate and connect.
Resource concerns remain part of the discussion
The launch also comes as Malaysia continues to examine the resource and governance requirements linked to data center development. Malaysia’s Minister of Digital Gobind Singh Deo said industry discussions have included questions about energy supply, water availability, and whether facilities are being built under proper governance standards.
“Let’s be realistic because people do ask questions about whether there is sufficient energy, water, and of course, when you build these structures, concerns about noise pollution,” Gobind said.
He said public concerns should also be addressed by data center operators. “I would ask the industry to try and also manage these conversations. I think it’s good if the industry can also explain to people in the area about what is really happening and acknowledge these concerns,” he said.
Gobind said federal, state, and local authorities are involved in those discussions, alongside agencies such as MITI, MIDA, MDEC, and the Data Center Task Force. He said the task force is examining issues including energy sufficiency, water supply, compute capacity, and coordination with state governments.
Scroggie said NEXTDC engaged federal and state agencies before deciding what to build in Malaysia. He said the company assessed available power and water resources, adding that water use remains one of the main social license questions for digital infrastructure.
Scroggie also said NEXTDC does not want to develop digital infrastructure that uses potable drinking water. He also said purpose-built data centers can improve power use compared with computers housed in legacy office buildings.
NEXTDC Group Chief Development Officer Simon Cooper said the company is prepared to respond to feedback from nearby residents, including complaints about nighttime noise.
“If people around here believe that it is too noisy, they have the right to write a letter to the council, and the council will write to us, and we have to measure things,” Cooper said. “So if something has changed, then we have to fix it.”
Jobs and regional links
Scroggie said NEXTDC’s investment in Malaysia would create hundreds of permanent jobs. He said those roles would support the company’s Southeast Asian operations and its 17 operational data centers in Australia.
Gobind said the launch supports the country’s goal of becoming a digital hub for Southeast Asia. He said facilities such as KL1 provide the resilience, security, and scale needed for cloud-driven services under Malaysia’s AI Nation 2030 agenda.
Gobind said the RM2.8 billion investment reflects investor confidence in Malaysia’s digital ecosystem. He said Malaysia also needs to prepare workers for new technology roles through upskilling and reskilling.
Selangor Menteri Besar Datuk Seri Amirudin Shari said the project followed NEXTDC’s groundbreaking ceremony on June 9, 2023, and placed Petaling Jaya in a position to support AI-related infrastructure for large businesses, financial institutions, critical industries, and government operations.
Amirudin said the state government would continue explaining how data centers operate to the public. “Normally when they think about data centers, they think this is a house that eats too much energy or water,” he said.
He added that the state has measures in place to ensure data center operators follow sustainability standards.
Australian High Commissioner to Malaysia Danielle Heinecke said KL1 reflects Australia’s role as a long-term investor in Malaysia’s digital economy.
“NEXTDC, like many Australian companies, is a reliable and long-term investor in Malaysia, committed to building a sustainable digital economy sector in Malaysia, with Malaysia and for Malaysian customers,” Heinecke said.
She said the 65MW facility provides energy-efficient infrastructure for AI and high-performance computing customers in Malaysia. She also said the Australian Government supports investors such as NEXTDC in Southeast Asia through Invested: Australia’s Southeast Asia Economic Strategy to 2040.
NEXTDC said the Malaysia expansion strengthens the Australia–Asia digital corridor. The company said KL1 will support Australian organizations expanding into the region while extending its infrastructure operations beyond Australia.