NEXTDC has launched its first international data centre, KL1 Kuala Lumpur, following a RM2.8bn ($711.9m) investment in Malaysia’s Klang Valley business and technology region.

The facility is designed to meet Southeast Asia’s growing AI and high-performance computing needs, offering up to 65MW of IT capacity.

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KL1 is set to become the first Uptime Institute Tier IV-certified data centre in Peninsular Malaysia, supporting continuous operations for advanced digital workloads.

The development responds to increasing demand for AI, cloud, and digital services in the region.

The data centre provides a secure environment that aims to help organisations scale their AI activities while maintaining operational stability and compliance with local data sovereignty requirements.

NEXTDC CEO and managing director Craig Scroggie said: “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.

“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 Kuala Lumpur links to NEXTDC’s wider ecosystem-led model, connecting clients with a network of cloud providers, carriers and technology partners within Southeast Asia.

This approach aims to simplify regional expansion for enterprises that need immediate access to connectivity and digital platforms.

The facility will serve as a hub for data management and compliance across Southeast Asia.

 In addition to its infrastructure, the KL1 centre is anticipated to contribute to local economic activity by supporting the growth of digital industries, drawing investment, and developing technical skills through ongoing workforce development and partnerships.

The Australian Government is backing investment in the region, including by NEXTDC, under the “Invested: Australia’s Southeast Asia Economic Strategy to 2040”.

The launch of KL1 Kuala Lumpur also enhances digital corridors between Australia and Asia, offering Australian organisations opportunities to expand into the region with established digital infrastructure support, and reinforcing Australia’s role as a supplier of high-performance data infrastructure.