In mid May 2026, NEXTDC Australia will open its first overseas data center KL1 in Kuala Lumpur, costing AUD 1 billion with a capacity of 65MW, making it Malaysia's first Tier IV certified facility.

By 2026, the global AI data center market size has exceeded 210 billion US dollars, with Southeast Asia leading the global growth rate. Against this backdrop, Australian digital infrastructure provider NEXTDC officially launched its first overseas data center - KL1- last Thursday, landing in Petaling Jaya, Selangor, Malaysia, and investing AUD 1 billion in the Southeast Asian AI infrastructure race.

1 billion Australian dollars bet

KL1 costs 1 billion Australian dollars, approximately 720 million US dollars, with a capacity of 65MW, designed specifically for AI and advanced digital workloads. It is the first hyperscale data center in the Malaysian peninsula to receive Uptime Institute Tier IV certification. The first phase has now been put into operation, and customers are preparing to settle in. The subsequent expansion is progressing synchronously.

NEXTDC CEO Craig Scroggie stated at the launch ceremony, 'We are in the midst of the fourth industrial revolution, where AI is redefining the needs of critical infrastructure.'. The current challenge is no longer acquiring technology, but whether it can be deployed within the framework of sovereign governance at an extremely fast speed and on a large scale. KL1 is built specifically to meet this demand, providing a high-performance, 'sovereign ready' environment. ”

Radiating from Kuala Lumpur to the entire Southeast Asia

Scroggie revealed that the company is considering building a second data center in Malaysia, and projects in New Zealand and Japan are also being planned. Malaysia's Minister of Digital, Gobin Sing, stated that the launch of KL1 is an important milestone in building Malaysia into the preferred digital hub in Southeast Asia, and the Ministry of Digital will continue to support strategic partnerships that create high-value employment and digital talent.

Australian High Commissioner to Malaysia Heinecke pointed out that NEXTDC is a reliable long-term investor in Malaysia, and the Australian government is supporting such overseas expansion through the 'Investment: Australia's Southeast Asia Economic Strategy 2040'. Keywords: Southeast Asian news, big data center

As the only listed company in Australia with a Tier IV certified data center network, NEXTDC is accelerating its layout of the Asia Pacific AI landscape with Kuala Lumpur as its pivot. The Southeast Asian data center market is expected to exceed $15 billion in 2026, with an annual growth rate of over 25% - NEXTDC's first mover advantage is being translated into tangible market share.Editor/Cheng Liting