Johor in Malaysia has established itself as Southeast Asia's fastest-growing data center hub, with aggregate supply nearly doubling in the past 12 months to 5.8 gigawatts (GW) by the second quarter of 2025, according to a report on Thursday (September 25).
According to Knight Frank's latest Asia-Pacific Data Center Report, fueled by strong government support and the launch of Malaysia's National Data Center Planning Guidelines, Johor is driving record-breaking Asia-Pacific expansion, marked by nearly 13 GW of new project announcements in the first half, a 160 percent year-on-year surge.
"Malaysia, and Johor in particular, is emerging as a key digital infrastructure hub in the region. We are seeing strong growth momentum, particularly with the increasing adoption of cloud computing and artificial intelligence (AI)-driven demand, demonstrating strong market fundamentals," said Amy Wong, Head of Research and Consulting at Knight Frank Malaysia.
"Going forward, ensuring resources can keep pace with this rapid growth will be key to maintaining momentum and strengthening Malaysia's role as a strategic base for long-term digital investment," she said.
According to the report, Johor's progress reflects Malaysia's strategic position in the digital economy.
In the first half of 2025 alone, the market recorded 260 megawatts (MW) of leasing activity, with demand largely driven by social media (61 percent) and AI workloads.
Its vacancy rate is just 1.1 percent, one of the lowest in the Asia-Pacific region. This underscores the urgent need for electricity capacity and careful planning to meet the surge in demand.
