Singapore: Credit rating agency Fitch Ratings foresees tremendous growth in data centres in Johor, with operating capacity to possibly reach up to 5,000 megawatts (MW) in 2029. Its head of Asia-Pacific infrastructure and project finance ratings, Sajal Kishore, highlighted Johor's significant potential capacity growth, noting an increase to about 1,400 MW in 2024 from 10 MW in 2021 due to its available resources and proximity to Singapore.

According to BERNAMA News Agency, Johor's essential resources, such as land, water, and power, are available at a lower cost, reducing operational expenses and making the state an attractive location for large-scale investments. Sajal Kishore mentioned that Johor serves as a 'Singapore-plus-one' destination due to its proximity, with a round-trip distance of under 90 kilometres from Singapore. This results in an ultra-low latency of just one to two milliseconds, which is advantageous for cloud computing.

Sajal also noted emerging constraints in Malaysia related to the rapid growth of data centres, with discussions on the broader implications of this expansion. A key concern is the extent of Malaysia's benefits, given that many main revenue counterparties are based in Singapore. This has led to conversations about developing alternative locations beyond Johor to manage supply constraints as demand rises.

Currently, Johor leads as Malaysia's data centre investment hub, with 42 projects worth RM164.45 billion approved as of the second quarter of 2025, creating over 6,000 job opportunities. The state aims to house six per cent of Malaysia's data centre capacity by 2030.