Data Centres

The next phase of Johor data centre growth is already happening

Malaysia expects data centre footprint to reach 4GW over next 4-5 years.

Paul Mah

Paul Mah

— 2 min read
The next phase of Johor data centre growth is already happening
Photo Credit: Unsplash/HFZ bD8. Sultan Ibrahim Stadium in Iskandar Puteri, Johor.

The next wave of data centre growth in Johor has already started. Are you ready for blast off?

Over the last few months, I’ve written quite a bit about data centres in Johor. From just 10MW two years ago, it’s now over 1,000MW, a phenomenal growth rate.

And a new wave of growth has already started - and is set to explode into public view very soon.

Once-in-a-generation growth

But first, what happened in Johor? Books will probably be written about it, but I think it can be summed up as this:

  • Moratorium on new data centres in Singapore.
  • A critical mass of data centres in Malaysia.
  • New strategic government policies.

In a nutshell: opportunity met preparation, bolstered by deft new government policies such as the Green Lane Pathway initiative resulted in a bloom of data centres.

And this once-in-a-generation surge of data centres looks set to cement Johor's role as a key data centre hub in the Asia Pacific.

Greater growth ahead

There are a lot more data centres to come.

Over the last few months, I've had lunch, coffee, and exchanged emails with various executives, and they are all saying pretty much the same thing:

  • "Yes, we are going in."
  • "We've already acquired land in Johor."
  • "Expect an announcement from us soon."

Even existing data centre operators are either moving into Johor or doubling down:

Around 4GW of data centres

It is no wonder Malaysia rushed out the Data Centre Planning Guidelines (GPP) on Thursday.

  • It will cover data centres exceeding 1MVA
  • Includes greenfield and brownfield data centres.
  • Site planning guidelines, procedures, and permissions.

In a Cabinet meeting, Minister Nga Kor Ming said he expects Malaysia's data centre market to grow to around four gigawatts over next 4-5 years.

For comparison: Singapore's data centre footprint, developed over two decades, currently stands at just 1.4GW.

The GPP will be tabled at the National Council for Local Government Authorities, scheduled for November 14.

Have you buckled on your seatbelts yet?

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