Johor takes on USD3.3 billion data centre project, set to become the largest in the region

Johor’s Tier III-certified Sea Data Centre, the first phase of the 500MW YTL Green Data Centre Park, will be able to accommodate up to 72MW of capacity

Malaysia’s data centre market is projected to expand at a CAGR of seven percent between 2022 and 2027, reported ETCIO Southeast Asia.

In Southeast Asia, Malaysia is the third most popular place, after Singapore and Indonesia, to locate a data center due to the country’s strong connectivity and high internet penetration. 

There are 14 data center facilities in Cyberjaya, which account for around 75 percent of Malaysia’s existing capacity. Among the other locations that have seen the development of data centers are Kuala Lumpur, Johor, Shah Alam, and Penang.

The report also mentioned that the government is currently focusing on digitalisation initiatives and the launch of Industry 4.0 blueprint investments, which is set to accelerate demand for data centres in the country.

Meanwhile, Menteri Besar Datuk Onn Hafiz Ghazi said that Johor is set to receive MYR15 billion (USD3.3 billion) in investments YTL Green Data Centre Park within the next decade.

He noted that by 2025, the digital economy is set to contribute 22.6 percent to Malaysia’s GDP, according to The Star Online.

More: Malaysia’s GDP grows 8.9% in Q2 2022, FDIs to support local tech players and real estate sector

“We have grown into a robust technology hub and a desired location for digital investments. Our status as the current regional hub for manufacturing, logistics, and big data analytics is definitely a plus point,” he said in his speech before officiating the groundbreaking ceremony of the Sea Data Centre on 25 August 2022.

The Tier III-certified Sea Data Centre, the first phase of the 500MW YTL Green Data Centre Park, will feature superior green power and connectivity, as well as accommodate up to 72MW of capacity.

OpenGov Asia reported that Johor’s position as a world-class data hub will be cemented by this data centre, which will be the largest in the region.

The project is estimated to be completed by Q1 2024. The three-storey green building will feature 24 data hall suites, M&E rooms, office space, parking, and storage facilities.

The Property Report editors wrote this article. For more information, email: [email protected].