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# Johor will host the bulk of Malaysia's data centre capacity by 2030
- URL: https://www.techstories.co/johor-will-host-the-bulk-of-malaysias-data-centre-capacity-by-2030/
- Published: 2025-06-14T14:05:11.000Z
- Updated: 2025-06-14T14:05:11.000Z
- Description: From zero data centers in 2020.
- Author: Paul Mah
- Tags: Data Centres

Johor will host 60% of Malaysia's data centre capacity by 2030\. Hard to believe that Johor had just one data centre in 2021.

Trade Minister Tengku Zafrul Aziz revealed the 60% figure at this week’s signing ceremony, where DayOne secured RM15 billion (US$3.5B) in financing for its data centres in Johor.

Right now, Johor has about 30 data centre projects completed or under construction; another 20 more are awaiting approvals. To think it has zero data centres in 2020.

What happened? Opportunity. Demand. Quick reaction.

### Once-in-a-generation growth

It's arguably that Singapore's data centre moratorium of 2019 set the stage for its growth in the region. Of course, it also happened at a time when data centre growth surged globally.

While Johor had a single 10MW data centre (Keppel's DC Johor 1) in 2021, regional players soon started building in earnest there - right across from Singapore.

It helped that Malaysia was an optimal location and reacted quickly to support the sector.

- Has a strong base of data centres.
- Surplus of power generation capacity.
- Created new initiatives to support data centres.

And things just took off.

But no matter how I look at the charts compared to other APAC markets, the [growth trajectory remains astounding](https://www.techstories.co/how-johor-grew-from-10mw-to-1-500mw-in-three-years/).

### Critical mass

Last year, everyone I spoke to was either already building a data centre campus in Johor, or say they have a pending announcement to make.

In fact, I visited the launch of one data centre in Johor last month, which was built with fully prefabricated modular components in [less than 8 months](https://www.techstories.co/brightrays-johor-data-centre-completed-in-8-months/).

More recently, I'm hearing of a slowdown in growth. Still, I believe Johor has achieved a critical mass as a data centre hub - it is now too big to fail.

### What's next

There are challenges that need to be addressed. Here are two of them.

**Enterprise workloads**

No matter who I asked, I haven't yet heard of any deployment of enterprise workloads in Johor. In my mind, it's vital for future growth due to the finite number of hyperscale customers.

**Resource shortage**

Localised resource shortage will need to be addressed. For instance, BrightRay's phase 2 and phase 3 will use dry coolers, not cooling towers. That's because Sedenak has some issues with its water supply - it'll take time to resolve.

What are your thoughts on the Johor data centre market?