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Johor emerges as data centre hub powerhouse in Southeast Asia

Publish date: Thu, 20 Jun 2024, 03:51 PM

JOHOR BARU: Johor is rapidly becoming a key player in the data centre industry in Southeast Asia, driven by its strategic location, robust infrastructure and investment-friendly policies from both state and federal governments.

As of June this year, nine data centre projects with a combined capacity of nearly 1,280 megawatts have been completed in Johor, while six more projects are currently under construction, expected to add about 1,490 megawatts.

Trade Investment and Consumer Affairs Committee Chairman Lee Ting Han said approximately 30 other projects are in various stages of planning and approval, reflecting Johor's growing appeal as a data centre hub.

He said Johor's proximity to major regional economic centres enhances its appeal for data storage and processing, while its robust utilities and infrastructure offer reliable power and water supply, essential for data centre operations.

"The favourable investment climate provided by the state and federal government policies offers the needed support and incentives for data centre development.

"With the rapid growth of data centres, we are also ensuring that the benefits extend to local communities.

"Guidelines and coordinating committees have been developed to ensure that the data centres prioritise the use of renewable energy and technologies that enhance energy and water efficiency," he said in a statement today.

Lee said provisions in the formulated guidelines aim to serve as a standardised reference point for local authorities and agencies to coordinate and oversee data centre projects.

"We want to ensure that the data centres adhere to best practices in power usage effectiveness and water usage effectiveness, aligning with international industry standards.

"With the guidelines, local authorities will also recommend that data centre operators use existing or vacant buildings," he added.

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