NEXTDC to invest RM3 billion in Malaysia over next five to 10 years - MIDA | Malaysian Investment Development Authority
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NEXTDC to invest RM3 billion in Malaysia over next five to 10 years

NEXTDC to invest RM3 billion in Malaysia over next five to 10 years

08 Jun 2023

Australia’s NEXTDC Ltd plans to invest approximately RM3 billion over the next five to 10 years through the development of Kuala Lumpur 1 (KL1), a Tier IV-certified data centre in Petaling Jaya.

In a statement today, the leading data centre operator said KL1 meets the highest industry standards globally and is expected to attract global tech service providers who are increasingly seeking Tier IV capability.

“Malaysia has been chosen as the first destination for the company’s overseas footprint with the construction of KL1.

“The company will also commit to digital skilling and educational initiatives to help empower Malaysia’s information and communications technology (ICT) and digital workforce to drive Malaysia’s competitive advantage in Asia,” said NEXTDC.

Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz said NEXTDC’s new investment decision reflects confidence in the Malaysian investment and business ecosystem.

He said the investment reaffirms Malaysia’s growing reputation as a premier data centre investment destination and the country’s position as a preferred digital hub in Southeast Asia.

“As a supportive component of a digital economy, NEXTDC’s strategic initiative is also well-aligned with our New Investment Policy, which aspires to create a more sustainable, balanced and inclusive socio-economic growth moving forward.

“MITI and its agency, the Malaysian Investment Development Authority (Mida), are committed to facilitating the success of NEXTDC’s strategic initiative in Malaysia, particularly towards helping us create higher-paying jobs and a more vibrant domestic small and medium enterprises supply chain,” he said in a statement.

Meanwhile, Minister of Communications and Digital Fahmi Fadzil said together with the Malaysia Digital Economy Corporation (MDEC), the government will fully support NEXTDC’s presence and the growth of the data centre industry through various initiatives under the Malaysia Digital Catalytic Programmes (Pemangkin).

“By unveiling their new data centre campus, NEXTDC not only reinforces Malaysia’s digital infrastructure but also accelerates our ongoing digital transformation.

“This move reflects the unwavering confidence in our robust and empowering data centre ecosystem, digitally skilled talent pool, and world-class infrastructure,” he said.

Selangor Menteri Besar Datuk Seri Amirudin Shari said the state government is fully committed to supporting high-impact investors such as NEXTDC.

Australian High Commissioner to Malaysia Dr Justin Lee said digital economy cooperation is a priority under the Australia-Malaysia Comprehensive Strategic Partnership.

“NEXTDC’s entry into Malaysia and the broader Asian market is a major milestone, boosting Malaysia’s digital economy ambitions by investing in critical infrastructure and skills to attract major tech companies,” he said.

Malaysian-born member of the Australian Parliament, Sam Lim, said 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. In particular, I look forward to many Western Australian businesses benefiting from this important relationship.

“Australia’s forthcoming Southeast Asia Economic Strategy to 2040 will strengthen the nation’s economic engagement with Southeast Asia and boost two-way trade and investment,” he said.

NEXTDC chief executive officer Craig Scroggie said the new KL1 facility will feature world-leading sustainability benchmarks and critical infrastructure standards.

“This special occasion marks the initiation of NEXTDC’s regional expansion throughout Asia, and we are excited about the contribution these strategic investments will make to shaping the future of digital infrastructure and creating a wealth of technology job opportunities in Malaysia and beyond,” he said.

Source: Bernama