Sedenak Tech Park in Johor's Kulai district will be the biggest data centre in Malaysia. KULAI: Johor’s Kulai district, some 70 kilometres north of Singapore, is known for its rubber plantations and oil palm estates.
Major data centre players like Nvidia, AirTrunk, GDS International, YTL Power as well as Princeton Digital Group have set up operations there, andAccording to resource site Baxtel, Johor has 13 data centre facilities across more than 1.65 million square feet of land mass. The state is also ranked as the largest data centre market in Malaysia and ninth-largest in Asia Pacific. Baxtel added that four other data centres are being constructed in Johor.
According to a report by real estate agency Knight Frank, the data centre market in Johor is expected to surpass Greater KL in terms of “live capacity”.Johor’s data centre boom is driven by its proximity to land-scarce Singapore which, between 2019 and 2022, paused new data centre development. Dr Ong Kian Ming, Malaysia’s former deputy minister of international trade and industry, said the data centre industry in Johor would appeal to both sides of the aisle in the trade war.
Nvidia founder Jensen Huang with Malaysia Prime Minister Anwar Ibrahim and Minister of Investment, Trade and Industry Tengku Zafrul Aziz. Managing director of YTL Power Yeoh Seok Hong said the AI factory will stimulate development of AI capabilities for “the entire region”. Its initial phase is expected to be ready by the first quarter of 2025.
Associate Professor Lee Poh Seng of the National University of Singapore’s faculty of engineering said Johor’s location is a “strategic advantage”. The Johor state government plans to integrate the Johor Bahru - Singapore rapid transit link with the proposed high-speed rail project as well as the light rail transit network in Iskandar Malaysia.
Singapore’s Economic Development Board has also launched an “SG+” initiative to encourage multinationals to set up headquarters in Singapore to leverage the country’s network of free trade agreements and specialised skills in technology. The deal will see Singapore and Johor work towards boosting the cross-border flow of goods and people. Singapore and Malaysia are also exploring other initiatives leading up to the SEZ, including a passport-free clearance system on both sides of the border.
Mr Lee Ting Han stressed that the southern state sees itself not as a competitor to Singapore on this front, but a partner. In 2019, more than 250,000 residents in various parts of Johor including Kulai, Kota Tinggi and Simpang Renggam were hit by water shortages, prompting the state government to impose water rationing.
“Tenaga also takes proactive steps to address both the growing demand for electricity and environmental concerns. These include the use of renewable energy such as solar, energy-efficient technologies and collaborating with data centres to promote energy efficiency and environmentally responsible practices,” he added.