The strategic location and favorable geography of Johor have significantly enhanced its value, positioning it as a key hub for investments and economic activities in the southern region of Malaysia.
As a result, Johor remains a magnet for data center providers, with an increasing number of companies exploring the possibility of establishing their facilities within the state.
The State Investment, Trade, and Consumer Affairs committee have revealed that 13 companies are currently engaged in discussions or are in the planning stages of investing in Johor. These deliberations involve both the Federal and Johor governments, with incentives being considered to encourage these companies to establish their operations in the state.
Recently, a major company unveiled the Equinix JH1 facility, a two-storey data center located at Nusajaya Tech Park (NTP), just 15km from Singapore via the Second Link Crossing in Tanjung Kupang, Gelang Patah.
Over the past two years, the Federal government has approved RM144 billion in data center investments nationwide, with RM90 billion earmarked for Johor specifically.
The state government underscores that with two prominent data center clusters – Sedenak Tech Park developed by Johor Corporation and NTP, Johor is well-positioned to emerge as a leading data center hub in the region.
”Johor, with its conducive ecosystem, is attracting more investments in data centers,” stated an official, noting that eight data centers are already operational in Johor, with another ten in various stages of development.
Moreover, the presence of these investors has not only generated thousands of job opportunities for Johoreans but has also benefited Malaysians from other states. This added value underscores the importance of Johor in nurturing a skilled workforce through reskilling and upskilling initiatives to thrive in the data-related industries.
In its forward-looking approach, the government aims to enhance and transform the data center industry in Johor by focusing on design, research, development, and leveraging cutting-edge technology.
Johor now serves as a vital gateway to the southern economy for Malaysia, attracting significant investments from the broader Asian region and beyond.
This progressive outlook is set to have a profound impact on global development and the well-being of all stakeholders involved.