According to The Edge Malaysia, Johor approved 42 data center construction projects in the second quarter of 2025, reinforcing its position as Malaysia's leading destination for digital infrastructure investment.
The announcement, made by Johor Housing and Local Government Committee chairman Datuk Mohd Jafni Md Shukor, highlights the state's growing role in driving the country's transition toward a high-tech, knowledge-based economy.
In a Facebook post, Mohd Jafni emphasized that the surge in data center developments is aligned with the goals of the Johor-Singapore Special Economic Zone (JS-SEZ), the Johor Digital Plan, and broader economic transformation efforts along the border. He noted that data centers are considered key infrastructure to support regional digitalization and AI-driven growth.
The Johor state government is prioritizing data center development within planned industrial areas, including Ibrahim Technopolis (IBTEC) in Kulai, the Sedenak industrial area, and the Pasir Gudang industrial zone. These locations were selected for their strategic advantages, such as access to major transportation routes, robust power grids, stable water supplies, and proximity to ports and international airports.
A total of 7,618 acres of planned industrial land has been allocated for data center expansion. Key development areas under the Pasir Gudang City Council include ASM Green, Rising Gateway, Iskandar Halal Hub, Kosmo, and Keck Seng, while IBTEC falls under the jurisdiction of the Kulai Municipal Council.
Johor's proximity to Singapore, combined with its more affordable land and abundant energy resources, has attracted major investments from global tech firms, including Nvidia and ByteDance. These companies are building large-scale data centers in the region to meet growing demand for AI and cloud computing services.
The JS-SEZ aims to enhance cross-border connectivity and streamline business operations, with features such as simplified immigration clearance and faster approval processes. To support the energy needs of these projects, Malaysia has ramped up power generation—part of a broader strategy to balance industrial growth with its long-term net-zero emissions target by 2050.
Johor's rapid growth in data infrastructure positions the state as a rising digital hub in Southeast Asia, contributing to national economic goals while supporting regional innovation and job creation.
Article edited by Jack Wu
