How much will land prices rise with the JS-SEZ?
A recent Johor announcement suggests data centre land is shrinking.
Land prices in Johor will rise with the Johor-Singapore Special Economic Zone (JS-SEZ), says CIMB. And a recent data centre announcement suggests this is true.
Yesterday, I wrote about DC Byte's JS-SEZ report. While it doesn't mention land price, the topic came up in my research for my post.
Land prices will go up
According to a CIMB report dated 7 August, land prices in Johor are expected to rise in Johor with the JS-SEZ.
The report picked a listed firm for its substantial landbank, noting the upside for two of its picks for their potential for building more data centres.
Cost of data centre land rising?
I wrote last week about Stack Infrastructure's first data centre in Malaysia. I observed how the 220MW campus in Johor is just 40% the size of NTT's 290MW campus.
Many of the large data centres in Johor are single-storey affairs, with roof-mounted chillers and cooling towers. This could change as land prices at ideal locations go up.
According to Stack, its new campus will feature:
- Two-story data centre.
- "Multi-level" electrical yard.
Note: I've not done a study of the land prices. The industry knows how to build multi-storey data centres, though it might adversely impact the construction speed of new data centres.
Digital economy
Depending on who you ask, the JS-SEZ is different for a number of reasons:
- Strong government support.
- Upcoming Rapid Transit System (RTS) Link.
- (Potential) Revival of KL-SG High Speed Rail.
Finally, the JS-SEZ earmarks 4 areas under "Digital economy" development. 3 are existing data centre clusters:
- Iskandar Puteri.
- Sedenak.
- Senai-Skudai.
Are you seeing land prices in Johor going up?
