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Johor's data centre boom – or bust?

Nicole Lim
Nicole Lim • 16 min read
Johor's data centre boom – or bust?
An aerial view of Princeton Digital Group’s JH1 campus at Sedenak Tech Park in Johor. Princeton acquired 31.5ha of land from JLand Group for its Johor data centre build. Photo: Princeton Digital Group
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The data centre industry in Johor has benefited from the demand for spillovers from Singapore, with hyperscalers, data centre operators, and investors showing strong interest. But could there be a risk of oversupply? 

A 40-minute drive into Johor typically means good food and shopping for Singaporeans. But for big tech companies, Johor has become a hotspot for them to expand their data centre ambitions and footprint in the region. Just 60km away from the Bangunan Sultan Iskandar (BSI) Customs, a cluster of data centres has rapidly emerged in the southern Malaysian state over the last 12 to 18 months. These four large data centre parks — Nusajaya Tech Park, Sedenak Tech Park (STeP), YTL Green Data Centre and Nusa Cemerlang Industrial Park — have become home to a mix of hyperscalers and data centre operators, showcasing the region’s dynamism and potential.

The four parks, separated mainly by palm oil plantations sprawled all over Johor’s forest reserves, average a few hundred acres in size. Nusajaya Tech Park, for instance, is spread over 519 acres of land, while Sedenak Tech Park (STeP), known previously as Kulai Iskandar Data Exchange (Kidex), occupies 745 acres. For reference, one football field is roughly 1.32 acres worth of land.

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