Equinix to build US$190 million KL2 data center in Kuala Lumpur

Equinix plans to build KL2, a new US$190 million data center in Cyberjaya, less than one kilometer from its existing Kuala Lumpur-area facility.

Equinix plans to build a second data center in the Kuala Lumpur area as it expands its Malaysia footprint. The facility, named KL2, will be located in Cyberjaya, less than one kilometer from the company's existing Kuala Lumpur-area data center, KL1.

In a press statement, Equinix said the new site represents an investment of more than US$190 million and will provide over 2,200 cabinets when fully built. KL2 will be Equinix's fourth data center in Malaysia. Its local portfolio includes KL1 in Kuala Lumpur, JH1 in Johor, and the planned JH2 facility.

Equinix said locating KL2 near KL1 will expand its local ecosystem of network providers, cloud platforms, and enterprise customers. The company also said it continues to expand its partner network in Malaysia, including local and regional carriers and service providers.

The company said KL2 is being developed to support cloud, AI, enterprise, and high-density workloads. Once operational, the facility is expected to support mission-critical workloads for enterprises, hyperscalers, and digital-native companies.

A portion of the facility's capacity will support liquid cooling, which is used in data centers to manage heat from dense computing systems, including AI and high-performance computing infrastructure.

The facility is designed for a mix of deployments, including retail enterprises, larger-footprint customers, and high-density computing environments. Equinix said the site will serve network providers, cloud platforms, enterprises, hyperscalers, and digital-native companies operating in the region.

Malaysia's digital policy agenda includes MyDIGITAL and the National Artificial Intelligence Office. Equinix linked the KL2 investment to Malaysia's role in supporting digital and AI-related infrastructure across ASEAN.

According to Equinix, KL1 has attracted customers across network, enterprise, cloud, and IT services segments since its launch. The company said more than two-thirds of KL1's direct customers operate across multiple metropolitan markets.

Equinix said KL2 will be connected to its wider footprint across Kuala Lumpur, Johor, and Singapore through Equinix Fabric, its software-defined interconnection service. The company said the facility will also support hybrid multi-cloud deployments and distributed data strategies across ASEAN.

Customers will also be able to use Fabric Intelligence for network observability and routing insights across distributed environments. Equinix said the service provides routing and bandwidth visibility across regional deployments.

Cheam Tat Inn, managing director for Malaysia at Equinix, said KL2 is intended to support Malaysia's digital economy and AI plans by allowing businesses to process data closer to where it is generated.

Equinix has secured adjacent land for future growth in Kuala Lumpur.

KL2 is expected to target 100% renewable energy coverage from its first day of operation. Equinix said this aligns with its global target to reach 100% renewable energy coverage across its retail International Business Exchange footprint by 2030.

The facility is also being engineered in line with commitments under the Asia-Pacific Data Centre Association's Sustainable Digital Infrastructure Accord. Equinix said the site is expected to support efficient data center operations, although it did not provide specific efficiency metrics.

Globally, Equinix operates more than 280 data centers across 77 markets in 36 countries. Its Asia-Pacific portfolio includes 65 data centers across markets including Malaysia, Singapore, Indonesia, India, Japan, Korea, Australia, and the Philippines. Equinix also operates five data centers in Shanghai through a strategic partnership.