8 June 2023

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Cloud, SaaS Enterprise Technology and Data Analytics
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Malaysia
Southeast Asia

Data centre operator NEXTDC announces major investment in Malaysian digital economy

ASX-listed data centre operator, NEXTDC Limited, will build its first overseas facility in Kuala Lumpur.


To be known as “KL1”, it will be located on 10 hectares of land in the heart of the metropolitan region, Klang Valley – an important economic centre of Malaysia.

Upon completion in late 2025, and over the centre’s 5–10-year development, NEXTDC will invest over 3 billion Malaysian Ringgit (A$1 billion) and commit to digital skilling and educational initiatives in the country and region.

It will be Malaysia’s first Uptime Institute Tier IV certified data centre facility above 5MW, with the capacity to host up to 65MW of IT critical power and direct cloud interconnection capability.

A data centre is a nexus for cloud service providers. It manages the data exchange and streams content making for a smoother user experience.

Next-level ambition

Established in 2010 and listed on the Australian Securities Exchange (ASX) the same year, the company has 12 operating facilities in Australia, with 10 more under development or at the planning stage including Tokyo, Auckland and Port Hedland in Western Australia.

NEXTDC’s data centres are certified to the highest international standards for data centre performance, including the Uptime Institute’s Certifications of Tier IV Design Documents, Tier IV Constructed Facility and Tier IV Gold Operational Sustainability.

NEXTDC is 100% carbon-neutral for corporate operations, certified under the Australian Government's Climate Active program. The company’s sustainability targets include 100% renewable energy and zero waste, supported by design and operational innovation.

Finding a foothold in Malaysia with Austrade

A critical piece of infrastructure in Malaysia and vehicle for significant GDP growth, NEXTDC’s General Manager, Asia & Japan, Dr Alex Teo, estimates that for every dollar NEXTDC spends, its clients, including some of the world’s biggest cloud service providers, will spend ten.

Dr Teo says the KL1 facility will also enable new digital industries to emerge in what is Southeast Asia’s newest digital hub.

‘What's underpinning our investment in Malaysia is our belief that the use of cloud services in Malaysia is about to boom. It is reinforced by public statements and direct feedback from our major customers, the cloud service providers. They share this belief, which is why we're proceeding with so much confidence in our investment in Malaysia,’ says Dr Teo.

Malaysia has emerged as the next digital frontier in Asia owing to its affordable and available land resources, a reliable power network and a government focused on advancing the digital economy.

NEXTDC had top legal representation in Malaysia to help it find its feet in Kuala Lumpur but working with Austrade was critical, Dr Teo says.

‘Austrade was just absolutely brilliant, going into bat for us and helping us get the approvals that we needed,’ he says.

Austrade assisted NEXTDC over a 2-year period with government engagement and relations, insight and advice on regulatory approvals, including working to have NEXTDC granted Malaysia Digital status by the Malaysian Government’s industry agency, the Malaysian Digital Economy Corporation (MDEC).

‘Austrade has a very important role to play in assisting Australian business to internationalise and make investments overseas,’ says Paul Sanda, Senior Trade & Investment Commissioner, Austrade Malaysia.

The opportunity for Australian businesses

NEXTDC intends to market its services in KL1 through its existing ecosystem of more than 770 technology partners, including global hyperscale customers, a considerable number of whom already operate in Malaysia, as well as new enterprises and government customers.

For local Australian businesses, the new data centre will mean a trusted and proven Australian partner to support them in their expansion ambitions into the region.

Trade between Australia and Malaysia is stable and mutually beneficial, but the nation’s digital capabilities have been less well known until now.

Sanda says there is a strong pipeline of Australian businesses in the technology and digitalisation sectors looking to make investments in Malaysia or expand existing operations.

For more information on how Austrade can help your business succeed in Malaysia, please contact paul.sanda@austrade.gov.au


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