Microsoft to Expand Data Centre hub in Johor, Malaysia

Malaysia is a data centre hotspot
Microsoft to build data centre in Eco World's industrial park, as Microsoft commits to investing US$2.2bn in cloud computing & AI services in Malaysia

Eco World has sold land in Johor, Malaysia, to a local subsidiary of Microsoft, which will develop a data centre site there. This is just one of many data centre developments in Malaysia this year, as the country is becoming a hub of data activity. 

The undeveloped plot is in the Eco Business Park VI in Senai, Kulai District, north of Johor and was acquired for RM402.3m (US$85.2m). The local Microsoft unit is a wholly-owned subsidiary of Microsoft Ireland Operations Limited. 

Microsoft’s commitment to sustainability, cloud computing and AI

Eco World is a Malaysian real estate firm which is spread across three key economic regions in the country, with development projects including townships, commercial developments, luxury apartments and green business parks. 

As the world's second largest cloud computing platform, Microsoft recognises the importance of minimising the environmental impact. Its cloud computing platform and service, Microsoft Azure, provides users with a range of cloud services, such as computing, analytics, storage and networking.

At the core of Microsoft Azure’s sustainability efforts is a commitment to use 100% renewable energy to power its data centres by 2025. Azure has also implemented innovative cooling technologies, such as using outside air for cooling and capturing waste heat to warm local buildings.

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Microsoft has recently committed to investing US$2.2bn in cloud computing and AI services in Malaysia, over the next four years. 

Eco World noted that this sale would go towards the company's cash reserves, for new landbank acquisitions.

“The group believes that the presence of an internationally recognised technology leader choosing to set up a sizeable data centre here, will further drive demand for EBP VI’s other industrial products,” Eco World said in a statement.

Malaysia’s data centre development

Johor, on Malaysia’s southern coast, is close to the Singaporean border. Johor’s growing data centre market is ready to accept overspill from its city-state neighbour.

Asia’s leading data centre provider is Princeton Digital Group (also known as PDG) which recently secured its first RM1.276 bn (US$280m) green loan for its 150MW AI-ready JH1 campus, in Sedenak Tech Park (STeP) also in Johor, Malaysia. The loan will be provided by the Joint Green Loan Coordinators Maybank, Standard Chartered Bank and UOB Malaysia and this financing is PDG’s first green loan aligned with its green finance framework. 

Check out where Princeton Digital Group was ranked in our Top 10 Colocation Providers in Asia

Earlier this year, Yondr Group energised its first data centre campus in Malaysia, marking a significant milestone in delivering power infrastructure. The leading global developer, owner and operator of hyperscale data centres has achieved this within two years of market entry, with the campus set to deliver 300MW of critical IT capacity when complete. It will see the development of multiple phases, with access to dark fibre connectivity, scalable utilities, and infrastructure. With some of the largest data and cloud sector players in Southeast Asia, the region forms a key part of Yondr Group’s Asia-Pacific (APAC) expansion strategy.

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