Equinix to build another data center in Malaysia with $190M

Equinix, Inc., the global digital infrastructure company, has on Tuesday announced plans to expand its presence in Malaysia with a new data center, KL2, in Kuala Lumpur with over $190 million investment. The firm said in a statement that the facility reflects its long-term commitment to the country as demand for digital infrastructure accelerates across cloud, artificial intelligence (AI), and enterprise workloads, supporting Malaysia’s digital economy and the region’s growing connectivity needs. Located in Cyberjaya, the new facility will be built less than one kilometer from Equinix’s existing data center in the metropolitan area (KL1), further strengthening the company’s growing ecosystem of network providers, cloud platforms, and enterprises in Malaysia. KL2 marks Equinix’s fourth data center in Malaysia, expanding a robust national footprint that includes its existing Kuala Lumpur site and significant ongoing investments in Johor (JH1 and the upcoming JH2). Representing a total investment of over $190 million, KL2 will deliver more than 2,200 cabinets when fully built out. To address this strategic imperative for scalable, low-latency, and highly interconnected digital infrastructure, KL2 will provide a reliable platform for mission-critical workloads once operational. It will support digital-native companies, hyperscalers, and multinational enterprises as they expand in the region, enabling them to scale efficiently, deploy Distributed AI and hybrid multi-cloud architectures across ASEAN, and deliver faster, more seamless digital experiences. This expansion comes at a pivotal time as Malaysia cements its status as a central hub for digital and AI innovation in ASEAN. Driven by strategic government initiatives such as the newly launched National Artificial Intelligence Office (NAIO) and the MyDIGITAL . This surging demand is already reflected in the exceptional commercial momentum of Equinix’s existing Cyberjaya site, KL1, according to the statement. “This expansion marks an important milestone in our journey to elevate Malaysia’s digital economy. By providing AI-ready infrastructure in Kuala Lumpur and Johor responsibly, we are directly supporting national agendas to advance the country’s AI ambitions, “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,” said Cheam Tat Inn, Managing Director, Malaysia, Equinix. It is noted that the facility will be integrated into Equinix’s global network and interconnected with its footprint across Kuala Lumpur, Johor, and Singapore via Equinix Fabric. This enables them to deploy high-performance AI workloads and distributed data strategies securely and efficiently across ASEAN. By extending its presence in Kuala Lumpur, Equinix said it continues to strengthen regional connectivity and support businesses in building resilient, future-ready digital infrastructure. The facility is purposefully designed to support a balanced and interconnected diverse mix of customers, ranging from agile retail enterprises to large footprint (LFP) deployments and high-density workloads. To meet the rigorous demands of next-generation AI and High-performance computing (HPC), a substantial portion of total capacity supports advanced liquid cooling solutions. This capability is critical for supporting the high-density requirements of next-generation Distributed AI workloads and HPC. As part of its growing ecosystem in Malaysia, Equinix said it continues to expand its network of partners, including local and regional carriers and service providers, enhancing interconnection opportunities for customers. The development is part of Equinix’s long-term expansion strategy in Malaysia, with future growth potential supported by adjacent land secured for future expansion, reinforcing Kuala Lumpur’s role as a key interconnection hub in ASEAN. In line with Equinix’s global sustainability commitments, the facility is expected to achieve strong operational efficiency, supporting more resilient digital infrastructure operations. To meet regional industry commitments agreed to and as set out in the APDCA’s Sustainable Digital Infrastructure Accord, KL2 is targeting 100 percent renewable energy coverage, aligned with Equinix’s global goal to achieve 100 percent renewable energy coverage across its retail IBX footprint by 2030. Globally, Equinix operates over 280 data centers across 77 markets in 36 countries, serving over 10,500 businesses. In the Asia-Pacific region, Equinix’s portfolio includes 65 data centers across key metros in Australia, China*, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, and Singapore. Equinix scales Malaysia’s data center footprint with expansion in Kuala Lumpur