The rise of the data centre industry has benefited Johor
According to the 1H2023 report by Malaysian property agency Zerin Properties launched The Continuum, the state of Johor in Malaysia is projected to attract RM17 billion ($4.9 billion) in new investments in data centers in 2024, building The Continuum Showflat on the RM51.1 billion in data center investments in 2022.
Investors are flocking to Johor because, according to Previn Singhe, founder and group CEO of Zerin Properties, Singapore has instituted stricter criteria for data centers due to sustainability concerns. Because of their high energy needs, Singapore’s government banned new data centers in 2019, but in 2022 they were allowed to reopen.
The Singaporean company ST Telemedia Global Data Centres (STT GDC) is the most recent to announce the launch of a data center in Johor. STT’s second data center campus in Malaysia is located in Johor.
The new data center campus will be constructed on an area of 22 acres (8.9 ha), and it will feature a 120 MW IT power development fed by multiple substations in the area. It will be in Iskandar Puteri, Johor, within the Nusa Cemerlang Industrial Park (NCIP), only 15 kilometers from Singapore. In addition, mission-critical network connections will be available to the data center.
Panoramic Industrial Development (PID), a wholly-owned subsidiary of Bursa Malaysia-listed developer Crescendo Corp, sold the seven individual plots of land that make up the data center site. The price tag for the seven properties, which total 975,500 square feet, was RM117 million.
STT GDC CEO of Southeast Asia Lionel Yeo says, “Our expansion into Johor is a natural step forward as we deliver vital digital infrastructure services that not only meet the surging and ever-evolving demands of our customers for complex design and scalability but also anticipate future needs, particularly high-performance computing workloads for AI and visual computing.”
Data center projects in Kuala Lumpur and Cyberjaya, Malaysia are in the works thanks to a partnership between STT GDC and Basis Bay, a provider of sustainable cloud and green data centers, which was announced on November 2.
The PID division of Crescendo Corp sold 2.63 million square feet of vacant freehold land in Pulai, Johor, to Microsoft Payments (Malaysia) on November 17 for RM315.17 million.
EcoCeres, a Chinese company, announced in June that it would spend RM1 billion on a biofuels plant in Pasir Gudang, Johor. The facility, with an expected annual capacity of 350,000 tonnes, will be a major production hub for hydro-treated vegetable oils, sustainable aviation fuel, and bio-naphtha.
Zerin Properties’ Singhe predicts that Johor will continue to play a significant role in attracting foreign investment to Malaysia after receiving a record RM70.6 billion in foreign capital inflows in 2017.
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