MALAYSIA: Johor is set to lead Malaysia’s digital infrastructure expansion, becoming the country’s main hub for data centres.
The state’s data centre capacity of 253MW far exceeds that of Cyberjaya and Kuala Lumpur, according to BMI Research, making Johor the top choice for cloud service providers and large tech companies.
Private market financing has been key to Johor’s growth, with companies like Yondr securing significant capital to build advanced facilities in the state. The increasing consolidation in Malaysia’s crowded data centre market has boosted Johor’s position as a key investment location.
However, according to MalayMail, Fitch Solutions units noted that Johor’s success could also bring challenges as “financing will remain a crucial part of expansion within Malaysia.”
The company pointed out that Johor’s growing competition in the data centre market makes securing investment more important than ever. The firm also mentioned that government incentives to attract institutional investments will be vital for maintaining Johor’s edge.
Keppel’s decision to move its focus from Cyberjaya to Johor is another sign of the state’s growing role in the digital economy. BMI Research said this shift aligns with the rising demand for AI-driven and cloud-based technologies requiring stable, scalable infrastructure.
While smaller players in Malaysia’s data centre market may face challenges in the competitive Johor landscape, the recently signed deal between Malaysia and Singapore for the Johor-Singapore Special Economic Zone (JS-SEZ) is expected to support Johor’s rise as a regional data centre hub. /TISG