Seven more data centres for approval as Johor powers towards digital future

New Straits Times

30-07-2025

JOHOR BARU: Johor has reviewed seven new data centre projects for approval, reinforcing its position as Malaysia's top digital investment destination and an emerging tech hub in Southeast Asia.
State Housing and Local Government Committee chairman Datuk Mohd Jafni Md Shukor said a Data Centre Development Taskforce has been formed to coordinate the sector's rapid growth.
"The stakes are high, and we are making sure nothing is compromised," he said.
The task force, he added, ensures that data centre growth is balanced with sound urban planning, environmental sustainability, and meaningful opportunities for local talents.
The task force's second meeting yesterday was co-chaired by Johor Works, Transport, Infrastructure, and Communications Committee chairman Mohamad Fazli Mohamad Salleh and Investment, Trade, Consumer Affairs, and Human Resources Committee chairman Lee Ting Han. They vetted and endorsed the new applications as part of a broader push to anchor the state's place in the global digital economy.
To date, Johor has approved 42 data centre projects—clear evidence of growing investor confidence in the state's infrastructure capabilities and policy direction.
"We want approvals not just to be fast but responsible. It must be rooted in the state's real resource capabilities and environmental balance," he said.
The task force is led by PLANMalaysia Johor and includes key agencies like Invest Johor, local municipal councils, the Land and Mines Office, the Water Regulatory Body, the Economic Planning Division, the Iskandar Regional Development Authority, MIDA, Ranhill SAJ, and Tenaga Nasional Berhad.
Also playing a key role is Johor Special Water (JSW), a state-owned utility developing alternative and recycled water systems for hyperscale data centres. In partnership with companies like AirTrunk, JSW is building Malaysia's largest recycled water supply scheme—repurposing wastewater for data centre use while preserving potable water for communities.
Jafni said with digital infrastructure forming the backbone of key initiatives such as the Johor-Singapore Economic Zone (JSEZ) and the Johor Digital Blueprint, these data centres are no longer just property projects.
"These critical infrastructures are driving high-tech economic transformation," he said.
Development is being concentrated in strategic industrial areas, including Ibrahim Technopolis (IBTEC), Sedenak Tech Park, and Pasir Gudang, which offer excellent connectivity to highways, ports, airports, power grids, and water resources.
"Johor is no longer on the sidelines of the global tech revolution. We are in the heart of it," Jafni said.
To support sustainable growth, the state will limit new approvals in areas under the Johor Bahru and Iskandar Puteri city councils to avoid land-use conflicts near residential areas.
Johor is implementing Tier-4 global standards for future-ready infrastructure, including energy-efficient cooling systems, water recycling technology, and mandatory renewable energy components in all data centre projects.
These efforts align with Johor's twin goals: building a modern, digital economy and ensuring long-term environmental sustainability. Investors are also expected to provide fair wages and skills training to equip Johoreans for the digital economy.
"We are not just constructing buildings filled with servers; we are building Johor's future," Jafni said, adding that with a coordinated investment strategy and inclusive planning, Johor aims to become the digital capital of Southeast Asia by 2030.
He added Johor is emerging as Malaysia's digital vanguard, where fibre optics, cloud infrastructure, and green tech are fast replacing smokestacks as the drivers of economic prosperity.