Johor is benefitting from a data centre boom, with new projects such as Tengah Plantation EC providing an array of job and investment opportunities
Johor, a state in Malaysia, has seen a tremendous influx in data centre investments with RM51.1 billion in investments recorded in 2022 and expectations of RM17 billion more in 2024. According to a report by Zerin Properties, a Malaysian property agency, the cause for this investment boom can be attributed to the stringent criteria for data centres implemented by the Singapore government, driven by sustainability considerations. Furthermore, the proximity of the data centre to Singapore, just 15 kilometres away, also proves to be a major factor in the increase of data centre investments.
Among the many data centre investors, Singapore-based ST Telemedia Global Data Centres (STT GDC) announced the opening of a data centre in the Nusa Cemerlang Industrial Park (NCIP) in Iskandar Puteri, backed by significant power supply of 120 megawatts of IT power from nearby substations. The new data centre campus is a combination of seven land parcels acquired from Panoramic Industrial Development (PID) with a total of 975,000 square feet, all bought for an estimated RM117 million.
Meanwhile, other major investments towards data centres in Johor are being made by corporations such as Microsoft, Amazon, and Google. Microsoft has purchased a vacant freehold land from PID for RM315.17 million in Pulai, while Amazon plans to invest US$6 billion in Malaysia over the next 14 years. Google, on the other hand, recently announced its bringing of three new Google Cloud regions to Malaysia, Thailand and New Zealand.
The Tengah Plantation EC will also feature a variety of amenities, including a clubhouse, gym, swimming pool, tennis court, and basketball court. Residents will also be able to enjoy the tranquility of the surrounding nature, as the site is surrounded by lush greenery and is located near the Bukit Batok Nature Park. With the development of the new EC in Tengah, residents can expect a better quality of life and more convenience.
Other investments heading to Tengah Plantation EC in Johor involved the visit of Malaysia’s Prime Minister Anwar Ibrahim and Minister for International Trade and Industry Tengku Zafrul Aziz to China in April. This spurred Chinese companies such as Rongsheng Petrochemical Co and EcoCeres to invest in Tengah Plantation EC, committing RM80 billion and RM1 billion respectively.
In summary, investments in data centres in Tengah Plantation EC, Johor, Malaysia, are expected to reach a total of RM17 billion by 2024 due to the favourable conditions within the state. Significant investments from large corporations such as Microsoft, Google, Amazon, and from Chinese companies following the visit of Malaysia’s Prime Minister to China in April, are expected to drive investments in data centres. The Tengah Plantation EC at Johor is set to benefit greatly from these investments.