US data centre company Equinix is set to invest more than $190m in a new data centre in Kuala Lumpur, marking its fourth facility in Malaysia.
The site, designated KL2, will be built in Cyberjaya within one kilometre of the company’s existing KL1 facility in the greater Kuala Lumpur area.
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The development is driven by rising demand for artificial intelligence (AI), cloud and enterprise digital infrastructure across the Association of Southeast Asian Nations (ASEAN) region.
At full buildout, KL2 is expected to accommodate more than 2,200 cabinets, with capacity designed to serve a range of deployment types – from retail enterprise and large-footprint installations to high-density workloads.
A considerable share of the facility will incorporate liquid cooling infrastructure to handle distributed AI and high-performance computing requirements.
The site will be connected to Equinix’s broader network through Equinix Fabric and Fabric Intelligence, giving customers the ability to run AI and hybrid multi-cloud workloads across Kuala Lumpur, Johor and Singapore.
KL2 forms part of Equinix’s wider Malaysia strategy, which also includes its current Kuala Lumpur operations and active investment in Johor through the JH1 facility and the planned JH2 project.
“By providing AI-ready infrastructure in Kuala Lumpur and Johor responsibly, we are directly supporting national agendas to advance the country’s AI ambitions,” Equinix Malaysia managing director Cheam Tat Inn said.
“KL2 will not only enable businesses to process data closer to the source and deploy Distributed AI with agility, but it will also drive high-value job creation and build long-term economic resilience for the nation,” he added.
The company has also secured adjacent land at the KL2 site to allow for future capacity growth.
The investment comes as Malaysia pursues a broader ambition to become a regional hub for digital and AI activity, backed by government-led initiatives including the National Artificial Intelligence Office and the MyDIGITAL programme.
Equinix noted that more than two-thirds of customers at its existing KL1 site operate across multiple regional markets, spanning Kuala Lumpur, Johor and Singapore.
Globally, Equinix runs more than 280 data centres across 77 markets in 36 countries.
Its Asia-Pacific portfolio spans 65 facilities across markets including Australia, China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, the Philippines and Singapore.
