Johor's strategic location near Singapore, competitive land and electricity costs, favorable government policies, reliable infrastructure, and abundant resources make it an attractive destination for data centre development, especially as Singapore restricts new data centre construction.
Johor, Malaysia has emerged as a strategic hub for data centres in Southeast Asia, benefiting from its proximity to Singapore, abundant resources, and favorable government policies. This comprehensive guide provides detailed information about data centres in Johor including their locations, addresses, website information, and ownership details.
The Growing Data Centre Market in Johor
Johor has positioned itself as a leading destination for data centre development in Malaysia, particularly due to Singapore's restrictions on new data centre construction. The southern Malaysian state offers strategic advantages including:
- Proximity to Singapore's thriving tech ecosystem
- Lower land and power costs compared to neighboring countries
- Abundant water resources for cooling systems
- Favorable government policies and tax incentives
- Stable political and economic environment
- Strong digital infrastructure and reliable power supply
According to market forecasts, Malaysia's data centre capacity is growing at a compound annual growth rate (CAGR) of 42%, expected to increase from 128MW in 2020 to 750MW by 2025. Johor is capturing a significant portion of this growth.
Major Data Centres in Johor
AirTrunk Johor Bahru
Location: Johor Bahru
Status: Operational and planned expansion
Size: 235,750 SqFt
Type: Carrier-Neutral
Developer/Owner: AirTrunk
Website: airtrunk.com
AirTrunk has established a significant presence in Johor with its JHB1 facility and has plans for JHB2 expansion, demonstrating its commitment to the region.
Microsoft Data Centre
Location: Eco World's industrial park, Senai, Kulai District
Address: Eco Business Park VI, Senai
Status: Under construction
Developer: Microsoft (subsidiary of Microsoft Ireland Operations Limited)
Land Owner: Eco World (Malaysian real estate firm)
Investment: Part of Microsoft's US$2.2 billion investment in Malaysian cloud computing and AI services
Details: Microsoft acquired this undeveloped plot for RM402.3m (US$85.2m)
Bridge Data Centres
Location: Plentong and Kidex Sedenak
Status: Land Bank (Plentong) and Operational (MY06-02 Kidex Sedenak)
Type: Carrier-Neutral
Developer/Owner: Bridge Data Centres
Website: bridgedatacentres.com
DayOne Data Centres
Locations:
- Kempas Tech Park (Extra Large facility)
Status: Under Construction
Expected Completion: Q1 2025
Power Capacity: 108 Megawatts - Nusajaya Tech Park (Large facility
)Status: Operational
Gross Space: 242,188 SqFt
Type: Carrier-Neutral
Developer/Owner: DayOne
Website: dayone.co
Princeton Digital Group (PDG)
Location: Sedenak Tech Park, Johor
Project: JH1 campus
Status: Under development
Capacity: 150MW AI-ready campus
Developer/Owner: Princeton Digital Group
Website: princetondg.com
Yondr Group
Location: Johor
Status: Under Construction
Expected Completion: Q4 2025
Power Capacity: 98 Megawatts
Developer/Owner: Yondr Group
Website: yondrgroup.com
STACK Infrastructure
Project: Stack Johor JHB01
Location: Johor
Status: Under Construction
Size: 395,000 SqFt
Power Capacity: 96 Megawatts
Expected Completion: Q4 2026
Developer/Owner: STACK Infrastructure
Website: stackinfra.com
CURRENC Group
Location: Johor
Status: Planned
Power Capacity: 100 Megawatts
Expected Completion: Q4 2026
Type: Fintech focus
Developer/Owner: CURRENC Group Inc.
Website: currenc.com
Keppel DC Johor 1
Location: Johor
Status: Operational
Size: Small
Type: Carrier-Neutral
Developer/Owner: Keppel Data Center REIT
Website: keppeldcreit.com
YTL Data Centre
Location: Johor
Status: Operational
Size: 535,000 SqFt
Power Capacity: 72 Megawatts
Developer/Owner: YTL Power International
Website: ytl.com
TM ONE IPDC Data Center
Location: Nusajaya Tech Park
Type: Carrier-Neutral
Developer/Owner: TM ONE (Telekom Malaysia)
Website: tmone.com.my
Nxera Data Centre
Location: Johor
Status: Under Construction
Expected Completion: Q1 2026
Power Capacity: 64 Megawatts
Developer/Owner: Nxera
Website: nxera.com
Upcoming Data Centre Projects
Several major data centre projects are currently under construction or planned in Johor:
Additionally, companies including Edgnex, Epoch Digital, and ESR-Logos also have planned or land bank investments in Johor for future data centre development.
Key Data Centre Clusters in Johor
Two primary areas have emerged as significant data centre clusters within Johor:
- Sedenak Technology Park (STeP)
- Located in northern Johor
- Home to Princeton Digital Group's JH1 campus and Bridge Data Centres
- Developed as a data centre hub by the state government
- Iskandar Puteri/Nusajaya
- Home to DayOne's operational facility at Nusajaya Tech Park
- Offers proximity to Singapore
- Equinix announced plans to build a new International Business Exchange (IBX) data centre in this area in November 2022
Market Drivers and Challenges
Key Attractions for Data Centre Development in Johor
- Electricity Costs: Malaysia offers competitive electricity tariffs among ASEAN countries with peak and off-peak rates of 33.7 sen/kWh and 20.2 sen/kWh respectively for high-voltage industrial usage.
- Government Incentives: 100% tax exemption for eligible data centres and cloud business investments, along with other financial incentives.
- Land Availability: Abundance of industrial land at competitive prices compared to neighboring Singapore.
- Infrastructure: Established telecommunications networks, fiber connectivity, reliable power supply, and modern transport systems.
- Strategic Location: Proximity to Singapore's established ecosystem while offering more space and lower costs.
Challenges and Mitigation Strategies
- Power Management:
- Data centres consume massive amounts of energy
- Operators are implementing renewable energy solutions and energy-efficient cooling systems
- Water Resources:
- Cooling systems require large water volumes
- Companies are developing water recycling and conservation technologies
- Sustainability Compliance:
- Focus on low power usage effectiveness (PUE) targets
- Integration of renewable energy sources
- Implementation of energy-efficient technologies
Major Data Centre Operators and Their Presence
Several global data centre operators have established or are establishing a presence in Johor:
- Equinix: Announced entry into Malaysia with plans to build a new IBX data centre in Iskandar Puteri
- Bridge Data Centres: Operating MY06-02 facility in Sedenak
- Princeton Digital Group: Developing 150MW AI-ready JH1 campus
- AirTrunk: Operating JHB1 with expansion plans
- Microsoft: Building a significant facility in Eco Business Park VI
- TM ONE: Operating IPDC Data Center in Nusajaya Tech Park
Other global players with data centre footprints in the broader Kulai region include China Telecom, Zenlayer, Amazon AWS, Digital Realty, 365 Data Centers, MOD Mission Critical, IBM Cloud, and NTT Global Data Centers.
Future Outlook for Johor's Data Centre Market
The data centre market in Johor is expected to continue its rapid growth, driven by several factors:
- Spillover from Singapore: With Singapore restricting new data centre developments, Johor is well-positioned to capture the overflow demand.
- Growing ASEAN Digital Economy: Increasing digitalization across Southeast Asia creates growing demand for data processing and storage.
- AI and Cloud Computing Growth: The rise of AI applications and cloud computing solutions requires more data centre capacity.
- Government Support: Continued Malaysian government support through initiatives like MyDIGITAL, Jendela, and the National 4IR Policy.
- Sustainable Development: Focus on green data centres with renewable energy integration aligns with global ESG requirements.
As the data centre landscape continues to evolve, Johor is positioning itself as a premier location for data infrastructure development in Southeast Asia, balancing growth with sustainability and technological advancement.
Conclusion
Johor's transformation into a major data centre hub reflects the state's strategic advantages and proactive policy framework. The concentration of facilities across key industrial parks like Sedenak Tech Park, Nusajaya Tech Park, and Iskandar Puteri creates synergistic clusters that benefit from shared infrastructure and connectivity. With major hyperscalers and international operators committing billions in investments, Johor is positioned to become Southeast Asia's largest data centre market, supporting the region's digital transformation while maintaining focus on sustainable development practices.
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