Johor data centre boom hits capacity wall
KUALA LUMPUR: Johor's data centre boom is entering a new phase, with an acute shortage of available capacity set to trigger fresh investment not only in server campuses but also in the power, water, renewable energy and engineering infrastructure needed to keep Malaysia's digital economy running.
Johor's data centre boom in Malaysia is facing a capacity shortage, leading to fresh investments in various infrastructure, including power, water, renewable energy, and engineering. With only 0.7% of co-location data centre capacity vacant, the demand outpaces the available capacity. Johor offers a cost advantage over Singapore, particularly in land and power.
However, increasing electricity and water tariffs are narrowing the cost gap, prompting operators to invest more in renewable energy sources. According to Knight Frank Malaysia's Data Centre Atlas 2026, Johor is one of the fastest-growing data centre markets in Asia-Pacific, with a pipeline of 8,542 MW in development. The market valuation is estimated at US$39.11 billion (RM159.9 billion), second only to Japan.
The shift towards renewable energy and alternative power solutions could trigger another investment cycle in Malaysia's digital infrastructure, extending beyond data centre campuses to support infrastructure like power, water, and renewable energy capacity.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
