Building green in the age of AI: Equinix’s Malaysia data center strategy

“We believe Malaysia has tremendous potential to become a leading AI and digital hub and Equinix is committed to supporting that future through responsible and sustainable growth,” says Cheam Tat Inn, Managing Director of Equinix Malaysia.

Malaysia’s data center boom is reshaping the region’s digital infrastructure landscape. Fueled by AI, cloud adoption and hyperscaler investments, the country has become a magnet for global players including Microsoft, Google, AWS, Alibaba Cloud, Equinix, AirTrunk and many more.

Johor and Cyberjaya are emerging as strategic hubs, benefiting from strong connectivity, available land and supportive government initiatives. As demand for AI-ready infrastructure accelerates, opportunities are growing not only for data center operators but also for channel partners specializing in cybersecurity, power and cooling, networking, cloud and managed services. The challenge now is balancing rapid growth with sustainability, energy efficiency and long-term infrastructure resilience.

Reports by Malaysian media have highlighted growing pressure on electricity grids and water resources, particularly in Johor, where many large-scale facilities are being built. Experts warn that AI-driven data centers consume vast amounts of power and water for cooling, raising questions about long-term resource availability and infrastructure resilience.

In response, regulators are tightening approval requirements and encouraging higher energy-efficiency standards, renewable energy adoption and alternative water sources. For data center operators and channel partners in the data center supply chain, balancing rapid growth with environmental responsibility is becoming one of the industry’s most critical challenges.

Equinix in Malaysia

For Equinix, sustainability is at the core of its data center development and operations. With two data centers operating in the country and another two under construction, Equinix has embedded sustainability considerations into how its facilities are planned, designed and operated, while helping businesses access the digital ecosystems they need to innovate, scale and compete regionally.

“Ultimately, we see ourselves as more than a provider of space and power. We see ourselves as a long-term partner in Malaysia's digital future,” commented Cheam Tat Inn, Managing Director of Equinix Malaysia during a media briefing session recently at the KL1 Data Center in Cyberjaya.

Highlighting Equinix’s sustainability strategy, Future First, Cheam said the strategy is built around three pillars which are growing digital infrastructure sustainably, driving social progress and leading with integrity.

“Through our Future First strategy, we are focused on growing digital infrastructure sustainably, driving social progress, and leading with integrity. Our sustainability approach is not a stand-alone initiative. It's embedded into how we design, build, and operate our business globally, helping customers advance their own sustainability goals, while supporting the rapid growth of digital technologies, including AI,” he said.

Supporting sustainable data center development

In Malaysia, Chiam shared that Equinix is supporting sustainable growth in its data centers in Malaysia in four key areas.

“As we look at Malaysia's sustainability landscape, four priorities stand out. First is energy. As the country advances its National Energy Transition Roadmap, and renewable energy efficiency. Second is utility efficiency, as organizations look to maximize performance while managing resource consumption. Third is water stewardship, particularly in areas facing increasing demand for fresh water. Finally, data sovereignty and secure digital infrastructure continue to grow and are important. These priorities are not challenges to be built separately. They are interconnected elements of responsible digital growth and they shape how Equinix approaches investment and development in Malaysia.”

Taking a deeper look at these priorities, Cheam explained that for energy, its all about ensuring energy efficiency and grid readiness by working with utility providers such as TNB, regulators and ecosystem partners to align data center development with grid readiness, energy efficiency and the country’s broader energy transition priorities.

“This approach is about balancing growth and responsibility by focusing on efficiency, renewable energy and sustainable infrastructure development. We aim to expand digital infrastructure in a way that supports both our customers and Malaysia's long-term sustainability goals,” he said.

Cheaem also pointed out that Equinix supports Malaysia's National Energy Transition Roadmap by exploring cleaner energy pathways and participating in emerging renewable energy mechanisms such as CRESS and has maintained 100% renewable energy coverage across Malaysian operations and continuing to build on this achievement, while avoiding cost burdens on local communities.

When it comes to water stewardship, Equinix’s water approach in Malaysia is focused on reducing reliance on water-intensive cooling where possible, while ensuring cooling strategies are suitable for the local climate, water availability and long-term infrastructure conditions.

Chiam shared that this includes moving beyond water-intensive evaporative cooling approaches, with careful review of water use plans for new developments as well as conducting local water and environmental assessments to understand water stress, availability and long-term sustainability considerations before selecting cooling systems.

“In Malaysia, none of our sites use evaporative cooling. This is important because this helps to avoid the additional water demands associated with water-intensive cooling methods. Instead, we leverage climate-optimized designs and efficient cooling technologies that support reliable performance while helping reduce the need for water-intensive cooling approaches and supporting efficient resource use. This approach reflects our broader commitment to sustainable growth that balances digital infrastructure needs with responsible resource management,” he explained.

KL2 Data Center

In May 2026, Equinix announced that it's building its further data center in Malaysia. Built in Cyberjaya and representing a total investment of over US$190 million, KL2 will deliver more than 2,200 cabinets when fully built out. KL2 is also targeting 100% renewable energy coverage, aligned with Equinix’s global goal to achieve 100% renewable energy coverage across its retail IBX footprint by 2030.

According to Chian, the KL2 data center that is being developed is also designed with closed-loop cooling architecture, where coolant circulates within a sealed system to absorb heat before being cooled and reused.

Apart from that, the data centers will also rely on advanced cooling technology. The KL2 data center will have advanced cooling capabilities integrated from the design phase to support next-generation AI and high-performance computing workloads as well as have high-density infrastructure designed to help customers deploy AI workloads closer to where data is generated, processed and consumed.

Looking at interconnection, data sovereignty and the regional ecosystem, Chiam pointed out that Equinix's Malaysia platform enables businesses to scale securely across Kuala Lumpur, Johor and Singapore while supporting Malaysia's growing focus on AI, data sovereignty and trusted digital infrastructure.

“Responsible digital growth also requires trusted digital infrastructure. Through Equinix Fabric and our interconnection capabilities, organizations can securely connect across key markets while maintaining compliance with local requirements,” he said.

Equinix Fabric provides secure, low-latency connectivity to leading cloud providers, networks and key internet exchanges, including DE-CIX and MyIX while Equinix Fabric Geo Zones helps organizations keep data traffic within defined geographic boundaries, supporting compliance with Malaysia's PDPA and emerging AI governance requirements

The KL2 data center will be seamlessly integrated into Equinix's regional platform across Kuala Lumpur, Johor and Singapore via Equinix Fabric. It will also be supporting enterprises with secure, interconnected digital infrastructure that enables distributed AI, hybrid multi-cloud and regional digital growth.

To sum it up, Chiam stated that Equinix’s sustainability approach in Malaysia can be summarized to three key takeaways.

“First, we grow in line with real customer demand, taking a disciplined and long-term approach to expenditure. Number two, we design sustainability into our infrastructure from the beginning rather than treating it as an afterthought. And number three, we aim to create lasting value for Malaysia through our interconnected digital ecosystems, innovation, and electrification. We believe Malaysia has tremendous potential to become a leading AI and digital hub and Equinix is committed to supporting that future through responsible and sustainable growth,” he concluded.