JOHOR BAHRU: Johor is rapidly cementing its place as Malaysia’s premier data centre investment hub, with 42 approved projects worth RM164.45 billion (S$50 billion) as of the second quarter of 2025, according to The Star, citing Bernama.
Johor Menteri Besar Datuk Onn Hafiz Ghazi announced that these projects are set to generate over 6,000 quality jobs and will contribute a massive 78.6% of the nation’s operational IT capacity. By 2030, Johor is aiming to hold 6% of Malaysia’s total data centre capacity.
Onn Hafiz stated in a Facebook post that the state envisions becoming a leader in artificial intelligence (AI) and the digital economy. This would be made possible by integrating smart technologies into public services, boosting industrial competitiveness, and building a sustainable digital ecosystem that benefits all levels of society.
A regional digital innovation hub in the making
With its combination of large-scale data infrastructure, advancements in AI, and forward-looking state policies, Johor is positioning itself as a potential regional hub for digital innovation. The Menteri Besar emphasised that these developments will not only accelerate economic growth but also improve the quality of life through high-skilled employment, the growth of new industries, and the rollout of smart solutions to everyday challenges, as reported by The Star.
He added that these ambitions are backed by national-level coordination, following discussions with Digital Minister Gobind Singh Deo at the Malaysia International Trade and Exhibition Centre (MITEC) in Kuala Lumpur to align Johor’s role within the Data Centre Task Force (DCTF). The goal: to ensure that development is comprehensive, sustainable, and has a tangible impact on residents.
Why Singapore should pay attention
Johor’s rapid growth as a data centre hub isn’t just big news for Malaysia — it could have a direct impact across the Causeway. Being just minutes away from Singapore, Johor’s improving facilities could give Singapore’s digital economy some space; with land and power supply in Singapore already stretched, having a massive pool of data capacity so close by could be a game-changer.
Furthermore, Johor’s data centres could mean extra capacity, better backup options, and even help reduce costs for Singapore’s tech giants, cloud providers, and financial companies. This could help Singapore keep its edge in fast-growing fields like AI, fintech, and big data analytics.
These improved digital links could also bring the two economies even closer by creating a network where data moves quickly and securely across borders, and in a world where AI services and real-time processing are becoming the norm, having these resources right next door could give Singapore an advantage that’s hard to beat.
What people are saying
News of Johor’s rise as Malaysia’s data centre capital drew plenty of attention online. Some saw it as a win for jobs, with one commenter noting, “6,000 jobs during construction” — a sign of the short-term boost it could bring to local workers.
Others were more skeptical, pointing out that Johor’s success may have just as much to do with its location as with policy or planning. “This happened mainly because of its proximity to Singapore,” one user remarked, suggesting geography might be the biggest factor.
Whatever the view, there’s no denying Johor’s growing role in the digital economy — and that Singapore will be watching closely.
