The Johor Bahru tech hub has become the hottest data center market in APAC. Its rise is driven by Singapore’s limited land, growing digital demand, and the massive spillover of hyperscalers. In Q2 2025 alone, Johor approved 42 new data center projects, confirming its lead in the region. The state now holds more than 1,500 MW of total data center capacity across live, planned, and under-construction facilities. This momentum is powered by major players like Microsoft, Nvidia, AirTrunk, YTL Power, and Princeton Digital Group, all moving into Johor to secure land and energy that Singapore can no longer offer.
Johor Bahru Tech Hub: The Spillover Engine for Singapore’s Fintech
Johor’s rapid growth is tightly connected to the Singapore fintech ecosystem. As Singapore faces land scarcity and tighter planning rules, Johor has become its natural backend due to its proximity. Power and land are cheaper, approvals move faster, and large-scale zones—IBTEC, Sedenak, Pasir Gudang—offer 7,618 acres dedicated to digital infrastructure. IBTEC alone allocates 600 acres for data center development.
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This cross-border ecosystem allows Singapore’s finance and digital players to rely on Johor’s infrastructure while keeping their headquarters and front-end operations in Singapore. The spillover is not a side effect—it is now a core strategy.
Energy Demand: TNB’s Green Lane Keeps Growth Alive
Data centers are energy-intensive, and Johor’s boom depends on stable power. TNB has introduced a green lane designed to fast-track power supply for new data center projects. With energy and water needs expected to surge by 2030, this dedicated pathway is crucial.
Investors are responding. Johor attracted RM17 billion in new data center investments in 2024, following RM51.1 billion in 2022. In the first half of 2025, leasing activity added 260 MW, with 61% of it coming from social media platforms—signaling strong demand for rapid capacity growth.
The ability to guarantee power availability is one of the main reasons the Johor Bahru tech hub now outpaces every other APAC market.
Johor Baru Tech Hub is Transforming the Local Economy
Johor’s data center wave is driving a construction surge that reshapes the state’s economy. In the first nine months of 2025, Johor led Malaysia with RM91.1 billion in overall investments, heavily fueled by digital infrastructure demands.
Local builders, engineering firms, and utility contractors are now fully engaged in hyperscale development. The data center boom has created a supply chain pull effect—jobs, materials, logistics, and industrial services are scaling rapidly to match demand. For Johor, the digital economy is no longer a future goal; it is a present-day industry.
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AI Momentum: Hyperscalers and Specialized Facilities
Beyond sheer capacity, a defining feature of the tech hub in Johor Bahru is its pivot towards AI-ready infrastructure. Major hyperscalers like Google and AWS are not just leasing space; they are committing to build specialized facilities designed for high-density computing and advanced liquid cooling systems required for AI model training. This signifies a second wave of investment focused on quality and specialized capability, moving beyond standard colocation services. Johor is positioning itself not just as a storage hub, but as a critical node in the global AI infrastructure network.
A Dominant Future for the Johor Bahru Tech Hub
The Johor Bahru tech hub is no longer just an alternative to Singapore—it is becoming Asia’s new data center powerhouse. With rising capacity, hyperscaler commitments, and strong government support, Johor’s position will only grow stronger. To understand this market shift and explore how your organization can succeed in Southeast Asia, contact Eurogroup Consulting. With over 40 years of experience and deep expertise in Vietnam’s fast-moving markets, Eurogroup Consulting delivers the strategic insights needed to navigate the region’s most dynamic opportunities.
