KUALA LUMPUR, Sept 26 (NNN-BERNAMA) – Malaysia’s Johor state, has firmly established itself as Southeast Asia’s fastest-growing data centre hub, with aggregate supply nearly doubling over the past 12 months to 5.8 gigawatts (GW), as of the second quarter of 2025, a report showed, yesterday.
According to the latest Knight Frank Asia-Pacific Data Centre Report, backed by strong government support and the rollout of Malaysia’s national Data Centre Planning Guidelines, Johor is anchoring Asia Pacific’s record-breaking expansion, which saw nearly 13 GW of new project announcements in the first half – a 160 percent surge year-on-year.
“Malaysia, and Johor in particular, is emerging as an important hub for digital infrastructure in the region. We’re seeing strong growth momentum, especially with the rise of cloud adoption and artificial intelligence (AI)-driven demand, which speaks to the market’s solid fundamentals,” said Amy Wong, Head of Research & Consultancy, Knight Frank Malaysia.
“Looking ahead, ensuring that resources keep pace with this rapid growth will be key to sustaining momentum and reinforcing Malaysia’s role as a strategic base for long-term digital investment,” she added.
According to the report, Johor’s rise reflects Malaysia’s strategic positioning in the digital economy.
In the first half of 2025 alone, the market recorded 260 megawatts (MW) of leasing activity, with demand overwhelmingly driven by social media (61 percent) and AI workloads.
Its vacancy stands at just 1.1 percent, one of the lowest in Asia Pacific, underscoring the urgent need for power capacity and careful planning to meet surging demand.– NNN-BERNAMA
