Australia's NextDC to build first overseas data centre in Malaysia

Australia's NextDC to build first overseas data centre in Malaysia

Facility to come up on 10 hectares of land in Kuala Lumpur.

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Australia’s leading data centre provider, NextDC has unveiled its plans to build its first overseas facility in Kuala Lumpur, Malaysia.

To be known as “KL1”, the new DC will be located on 10 hectares of land in the heart of the metropolitan region, Klang Valley.

According to the Australian Trade and Investment Commission (Austrade), the new DC will be Malaysia’s first Uptime Institute Tier IV certified facility above 5MW, with the capacity to host up to 65MW of IT critical power and direct cloud interconnection capability.

Upon completion in late 2025, and over the centre’s 5–10-year development, NextDC will invest over 3 billion Malaysian Ringgit (S$87 million) and commit to digital skilling and educational initiatives, the release said.

NextDC’s General Manager, Asia & Japan, Alex Teo said the "KL1 facility will also enable new digital industries to emerge as Malaysia's newest digital hub."

Teo added that the firm had top legal representation in Malaysia to help it find its feet in Kuala Lumpur, but working with Austrade was critical.

Austrade has assisted NextDC over a two-year period with government engagement and relations, insight and advice on regulatory approvals, including working to have NextDC granted Malaysia Digital status by Malaysian Digital Economy Corporation (MDEC).

Austrade Malaysia's Senior Trade & Investment Commissioner Paul Sanda said he estimates the presence of a strong pipeline of Australian businesses in the technology and digitalisation sectors looking to make investments in Malaysia.

NextDC currently intends to market its services in KL1 through its existing ecosystem of more than 770 technology partners, including global hyperscale customers already operating in Malaysia, as well as new enterprises and government customers.

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