Equinix has announced plans to develop KL2, a new purpose-built IBX data centre in Cyberjaya, Kuala Lumpur, representing a total investment of over US$190 million and delivering more than 2,200 cabinets at full build-out.

Announced on 12 May 2026, KL2 will be Equinix’s fourth data centre in Malaysia, located less than one kilometre from its existing KL1 facility in Cyberjaya. The expansion reinforces Kuala Lumpur’s positioning as a high-density interconnection hub for enterprises, cloud providers, and network operators across ASEAN, as demand for AI-ready and hybrid multi-cloud infrastructure accelerates across the region.

AI-ready by design

KL2 is engineered to support high-density AI and high-performance computing workloads, with capacity for advanced liquid cooling solutions. Once operational, the facility will be integrated into Equinix’s global platform and interconnected with its footprint across Kuala Lumpur, Johor, and Singapore via Equinix Fabric. Through Fabric Intelligence, customers will gain AI-driven network observability and dynamic routing optimisation to run performance-intensive workloads across ASEAN.

The announcement comes as Malaysia advances national AI and digital infrastructure priorities through initiatives including the National Artificial Intelligence Office (NAIO) and the MyDIGITAL blueprint. More than two-thirds of KL1’s existing customer base already operate across multiple metros — a signal, Equinix says, of the shift from single-market deployments to integrated regional architectures spanning Kuala Lumpur, Johor, and Singapore.

“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.

Sustainability commitments

KL2 is targeting 100 per cent renewable energy coverage from day one of operations, aligned with Equinix’s global goal to achieve full renewable energy coverage across its retail IBX footprint by 2030. The facility is also engineered to meet commitments under the Asia Pacific Data Centre Association’s Sustainable Digital Infrastructure Accord.

Equinix’s Malaysia expansion extends beyond Kuala Lumpur — the company has also invested in Johor with JH1 operational and the upcoming JH2 in development. Globally, Equinix operates more than 280 data centres across 77 markets in 36 countries, serving over 10,500 customers.