Johor Bahru to house 60% of Malaysia’s data centre capacity by 2030

Capacity is expected to reach 500MW this year.

In a recent report, JLL revealed that Johor Bahru is expected to host 60 per cent of Malaysia’s total data centre capacity by 2030, cementing its role as the digital hub for Southeast Asia.

Here’s more from JLL:

Johor has become Malaysia’s top data centre hub, transforming from 10 MW capacity in 2021 to a projected 500 MW by 2025, thanks to its strategic location near a regional hub, lower costs, and government support.

The Johor-Singapore Special Economic Zone (JS-SEZ) is a landmark initiative specifically aimed at boosting the data center industry in the region. Companies like Bridge DC, GDS, and OpenDC are contributing to Johor’s emergence as Southeast Asia’s largest data centre market.

A major hyperscaler is increasing its investment with the purchase of land in Johor in Nusa Cemerlang Industrial Park

With a 2,570 MW pipeline, Johor is set to potentially exceed Singapore’s capacity. Fully occupied hyperscale facilities confirm strong market demand, offering investors an established growth opportunity with manageable risk in the digital economy.

Data centres face challenges beyond regulations, with electricity tariff increases from July 1, 2025 significantly impacting operations where power costs dominate expenses.

Outlook

For Users
• Hyperscale pre-commitments to dominate demand.
• AI developments to influence enterprise decisions.
• Lease rental rates to remain stable.

For Providers
• Johor attracts hyperscalers due to strategic location and excellent cable connectivity for digital infrastructure deployment.
• Government shifting from rapid expansion to controlled data centre approvals to ensure proper infrastructure support.
• Developers implement innovative solutions including alternative water sources, renewable energy, and sustainability frameworks.