Data centre operator NEXTDC said it has started construction of the KL1 facility in Malaysia's capital Kuala Lumpur, with a completion date in late 2025.
The KL1 facility represents a three billion ringgit - A$1 billion - investment by NEXTDC in Malaysia and the region, over the data centre's five to ten year development, the ASX-listed operator said.
“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," said Dr Alex Teo, NEXTDC's general manager for Asia and Japan.
"They share this belief, which is why we're proceeding with so much confidence in our investment in Malaysia,” Dr Teo said.
“The Malaysian Government, and its agencies such as the Malaysian Digital Economy Corporation (MDEC), have been extremely supportive throughout the whole process and are evidence of Malaysia’s capability and commitment when it comes to growing its digital economy and attracting productive investments,” he said.
Teo recognised the Australian High Commission and Austrade's Kuala Lumpur office being integral to getting NEXTDC to the point of investment and facility construction.
NEXTDC signalled the Malaysian investment in May this year, as it sought to raise funds for the KL1 construction.
KL1 will be Malaysia's first Uptime Institute Tier IV certified data centre, with capacity of up to 65 Megawatt, and direct cloud interconnection capability.