Johor just approved 42 data centres

In three months.

Johor just approved 42 data centres
Photo Credit: Paul Mah

What slowdown? Johor isn't done with data centres yet - it approved a whopping 42 data centre construction projects in Q2 just this year.

This nugget was shared on a Facebook post by Datuk Mohd Jafni Md Shukor last week and reported by The Edge Malaysia.

Planned industrial zones

Mohd Jafni offered insight into the Johor state government's approach to data centres. According to him, data centres in planned industrial zones are prioritised.

Industrial zones mentioned:

  • Ibrahim Technopolis (IBTEC) in Kulai.
  • Pasir Gudang industrial zone.
  • Sedenak industrial area.

Industrial zones in Malaysia offer strategic advantages such as:

  • Direct access to major highways.
  • High-capacity power grids.
  • Stable water supply, and
  • Proximity to ports, intl airports.

IBTEC alone has allocated 600 acres specifically for data centre developments, he said.

The return of data center clusters

Of course, depending on the contracts signed with utility providers, developers may be able to defer or extend their plans if demand fails to materialise.

Localised issues could affect the supply of water and power. The Sedenak area, for instance, is experiencing temporary constraints with its water supply.

This isn't the first time data centres have been clustered together. Back in 2013, Singapore launched its Data Centre Park - a dedicated cluster in the west.

  • Adoption was slow, however, as colocation operators worried that clustering would erode their competitive differentiation.
  • How the tables have turned. Today's hyperscale facilities are so massive that clustering isn't just sensible - it's become the preferred approach.

Singapore to release new capacity soon

For now, the industry is looking forward to the release of new data centre capacity in Singapore soon.

This will likely happen through DC-CFA 2 in the coming month, though other initiatives to release more data centre capacity is also possible.

I wonder if this will have an effect on data centre developments in Johor, just north of Singapore.