Australia’s NEXTDC to build RM3bil data centre

PETALING JAYA: Australia’s NEXTDC Ltd intends to invest RM3bil over the next five to 10 years via the development of Kuala Lumpur 1 (KL1), a Tier IV-certified data centre in Petaling Jaya, with the aim of creating significant employment opportunities.

KL1, a 65-megawatt (MW) colocation data centre, will service cloud platform providers, enterprises and government customers throughout Malaysia.

In a statement yesterday, the Australian High Commission Malaysia (AHCM) said KL1, the first Tier IV accredited data centre above five MW in Peninsular Malaysia, will be the most technologically advanced, fault-tolerant, secure and sustainable by industry standards.

The high commission commented that NEXTDC’s investment will accelerate the development of critical infrastructure required to advance Malaysia’s digital economy ambitions, adding that the new KL1 data centre will attract global tech service providers who are increasingly seeking Tier IV capability.

“We also welcome the announcement that NEXTDC will launch its new multidisciplinary regional operations centre, with Malaysia facilitating the company’s wider expansion into other Asian markets.

“NEXTDC sees continued potential in the region as many Asian economies experience rapid uptake of digital services,” it said.

NEXTDC is a technology company listed on the Australian Securities Exchange 100 index, with a nationwide network of the most sophisticated Tier IV data centre facilities across Australia.

It is certified carbon neutral under the Australian government’s Climate Active Carbon Neutral Standard.

The AHCM said the investment highlighted NEXTDC’s commitment to digital skilling and educational initiatives, which will develop Malaysia’s information and communications technology as well as digital workforce, sharpening the country’s competitive advantage.

The high commission said the launch of the project in Kuala Lumpur yesterday was attended by Minister of Communications and Digital Ahmad Fahmi Mohamed Fadzil, Selangor chief minister Datuk Seri Amirudin Shari, as well as Malaysian-born Member of Australian Parliament (Tangney) Sam Lim.

“This sent a strong signal of the Malaysian government’s support for high quality Australian investments in Malaysia and its commitment to developing its digital ecosystem,” said the AHCM.

Lim said the announcement underscored the close economic partnership between Malaysia and Australia, emphasising that data is the lifeblood of the global economy in an increasingly interconnected world, before adding that digital economy cooperation was a priority under the Australia-Malaysia Comprehensive Strategic Partnership

“We are pleased NEXTDC’s investment will boost Malaysia’s digital economy ambitions by investing in Malaysia’s skills and expertise.

“The Australian government is committed to deepening economic links and trade and investment with Malaysia and the region. This provides exciting new markets and opportunities for Australian businesses,” he said.

Lim believes many Australian businesses could benefit from such business cooperations, highlighting that Australia’s forthcoming South-East Asia Economic Strategy to 2040 will be to strengthen Australia’s economic engagement with South-East Asia to boost two-way trade and investment.