The news comes after the company confirmed its market entry into the country in November, with plans for a new data centre located in Johor called JH1.
Malaysia is one of the fastest-growing data centre markets in the ASEAN region, spurred by strong cloud growth and e-commerce adoption as well as continued investment in 5G.
Much of that development, Equinix says, is attributed to Johor and Kuala Lumpur. The firm’s expansion is expected to provide greater digital infrastructure capacity in Malaysia to address rising demand from local and global companies expanding in the country.
Following our initial investment in Johor, we are excited to add another data centre in Kuala Lumpur,” said Jeremy Deutsch, president of Asia-Pacific at Equinix.
“By expanding Platform Equinix in the two most strategic metros in Malaysia, we will enable Malaysian businesses, as well as multinationals with a presence in Malaysia, to leverage a trusted platform to bring together and interconnect the foundational infrastructure to power their success.
“We believe the two data centres will fuel Equinix's existing data centre momentum and support Malaysia's aspirations as a digitally driven connectivity hub."
The new facility in Kuala Lumpur, named KL1, alongside the JH1 facility in Johor, will provide the digital infrastructure that businesses need to capitalise on the country’s digital economy.
KL1 will enable global networks, content providers and enterprises to exchange high volumes of internet traffic via Equinix Internet Exchange.
Through one of the world’s largest global peering solutions at scale, service providers will have access to new digital corridors to exchange data directly with other internet service providers.
Over the past several years, we have witnessed Malaysia emerge as an increasingly strategic location for global digital infrastructure, and we believe it to be an attractive destination for data centre growth and investment.
According to Synergy Research, Malaysia is already the third largest data centre colocation market in the ASEAN region and is forecast to have a compound annual growth rate (CAGR) of around 11% from 2022-2027.
John Dinsdale, chief analyst and research director at Synergy Research Group said: "Malaysia is a vibrant market for digital infrastructure, driven by a strong economy, growing demand for digital services, a favourable location and increasing investments from the world's leading hyperscale operators.
“That is opening up major long-term growth opportunities for leading data centre operators."
