Johor is now one of Asia-Pacific’s biggest data centre markets: Knight Frank’s Data Centre Atlas 2026 puts its live IT capacity at 1,110 MW, its incoming pipeline at 8,542 MW (the largest in the region) and its co-location vacancy at just 0.7%. Malaysia’s Digital Ministry says 16 of 27 approved data centre projects nationwide are in Johor, and the 27 are projected to create 4,053 jobs, 3,523 of them high-skilled. For Johor data centre property demand, the main channel is skilled professionals, project teams and the service economy around them, which tends to favour well-connected rental homes in JB city centre.
Ask anyone who follows Johor Bahru property what has changed since 2023, and the answer usually includes two things: the RTS Link and data centres. The RTS story is about connectivity to Singapore. The data centre story is about jobs, capital and a new class of workers arriving in southern Johor. This guide looks at the data centre side only: how big the sector is, where it sits, how many jobs it really creates, and how that demand can reach the housing market, including city-centre projects such as Causewayz Square and Kebun Teh projects such as The Asteriaz. Every figure below comes from a named research house or an official statement, and we flag what is a forecast versus what has already happened.
How big is Johor’s data centre market in 2026?
Johor is the third-largest live data centre market in Asia-Pacific and has the largest incoming pipeline in the region, according to Knight Frank Malaysia’s Data Centre Atlas 2026, released in July 2026.
That ranking matters because it puts Johor alongside markets such as Tokyo and Singapore, which have been building data centres for decades. Knight Frank’s headline numbers for Johor are summarised below.
| Indicator (Knight Frank Data Centre Atlas 2026) | Johor | Regional context |
|---|---|---|
| Live IT capacity | 1,110 MW | 3rd in Asia-Pacific, behind Tokyo (1,473 MW) and Singapore (1,118 MW) |
| Incoming pipeline | 8,542 MW | Largest in Asia-Pacific |
| Co-location vacancy | 0.7% | Lowest in the region (Singapore 4.9%, Bangkok 23.3%, Jakarta 20.5%) |
| Total market value | US$39.11 billion (about RM159.9 billion) | 2nd in Asia-Pacific after Japan |
| Data centre land and property deals, 1H2026 | About RM1.02 billion | Covering roughly 66 ha (about 164 acres) |
| Largest single new commitment cited | RM12.7 billion | Two new hyperscale data centres adding 280 MW |
A vacancy rate below 1% means almost every megawatt that is built gets taken up. That is the clearest signal that demand from cloud and AI operators is still running ahead of supply in Johor, and it explains why the pipeline is so large.
Why do data centres choose Johor?
In short, Johor combines land, power and proximity to Singapore, the three things data centre operators care about most.
Land in Singapore is scarce and new data centre approvals there have been selective, so many operators have looked across the Strait. Johor offers large industrial sites at lower land and operating costs, while staying closely linked by fibre and subsea cables to Singapore’s regional network hub. For cloud and AI customers that need low latency, being next to Singapore without being inside it is Johor’s main draw.
Policy also helps. In January 2025 the prime ministers of Malaysia and Singapore signed the Johor–Singapore Special Economic Zone agreement, covering more than 3,500 sq km of southern Johor, with a special corporate tax rate from 5% for up to 15 years for qualifying high-value new investments and a 15% concessionary income tax rate for up to 10 years for eligible knowledge workers. These incentives are not data centre-specific, but they make Johor a more natural home for the wider digital economy. We cover what the zone means for homebuyers in a separate guide.
Where are Johor’s data centres located?
Most Johor data centres cluster in a few industrial and technology parks in southern and central Johor, rather than in JB city centre itself.
JLL Malaysia’s 4Q2025 market briefing named the main clusters:
- Nusajaya (Iskandar Puteri) – described by JLL as a premium data centre destination, close to Singapore via the Second Link.
- Sedenak – Phase 1 of the Sedenak technology park is fully operational, with Phase 2 expected to follow.
- Kulai – YTL Corp is building a 500 MW campus intended to host tenants including SEA Ltd and Nvidia.
- Emerging alternatives – JLL says operators are now exploring Tebrau, Ulu Tiram and Pasir Gudang as the established parks fill up.
For homebuyers, this geography is useful. Data centre staff work across several sites, while JB city centre remains the place where the highway network, JB Sentral, the CIQ checkpoint and, from 2027, the RTS Link all meet. Many professionals who split time between Johor sites and Singapore offices value that central base. You can read more about the transport side in our guide to JB condos near the RTS Link.
How many jobs do Johor data centres create?
Data centres create fewer direct jobs per ringgit than factories, but the jobs they do create are mostly high-skilled and well paid.
In a written parliamentary reply reported on 15 October 2026, the Digital Ministry said 27 approved data centre projects across Malaysia, with an investment pipeline of about RM225.97 billion, are projected to create 4,053 jobs. Of those, 3,523 are high-skilled roles, and about 89% of the high-skilled roles are expected to go to Malaysians. Johor hosts 16 of the 27 approved projects, Selangor 10 and Negeri Sembilan one. The ministry did not publish a Johor-only job figure, so we do not estimate one here.
Three layers of employment
It helps to think of data centre employment in three layers, because each one reaches the housing market differently:
- Operations staff – facility engineers, electrical and mechanical technicians, network and security specialists. These are the permanent, high-skilled roles counted by the ministry.
- Construction and fit-out teams – a large hyperscale campus is built in phases over several years, bringing project managers, engineers, consultants and contractors who often need housing for months or years at a time.
- The supporting economy – power and utilities upgrades, logistics, security, cleaning, food and retail, plus the professional services (legal, finance, recruitment) that follow large investors.
Only the first layer appears in the official job count. The second and third layers are harder to measure, so treat them as a qualitative boost rather than a number.
How do data centres drive housing demand in Johor?
Data centres mainly drive housing demand through skilled workers and project teams who rent, and through broader income growth that supports buying over time.
JLL Malaysia noted in early 2026 that Johor’s residential market was supported by spillover demand from data centre and industrial expansion, alongside the Johor–Singapore Special Economic Zone. The pathways usually look like this:
- Rental first. Engineers and project staff on multi-year assignments typically rent before they decide whether to buy. Furnished one- and two-bedroom units near transport and amenities are the natural fit.
- Corporate leasing. Operators and contractors sometimes lease units for rotating staff, which favours well-managed buildings with good security, parking and fast internet.
- Short-stay visits. Visiting specialists, auditors and vendors create demand for serviced apartments and hotels, especially near JB Sentral and the CIQ.
- Owner-occupier upgrades. As skilled Malaysians take higher-paying roles, some move from renting to owning, often in the mid-priced segment.
None of this guarantees higher rents in any single building. It means the pool of potential tenants is wider and more diverse than it was a few years ago, which historically tends to support occupancy for well-located, well-managed stock.
Which JB homes suit data centre professionals?
Professionals in this sector generally look for convenience, connectivity and a stable, well-managed building, rather than the largest floor area.
Current rental asking levels near the RTS Bukit Chagar station give a sense of what the city-centre market looks like today. These are asking rents from portals and rental platforms in mid-2026, not achieved rents.
| Completed project near RTS Bukit Chagar | Approx. walk to RTS | Studio asking rent (RM/month) | 2-bedroom asking rent (RM/month) |
|---|---|---|---|
| TriTower Residence | ~350 m | ~2,740 | ~3,075 |
| R&F Princess Cove Phase 1 | ~700 m | 2,100–2,800 | 2,700–3,000 |
| Twin Tower Residence | ~700 m | 2,600–3,000 | 3,300–3,600 |
| SKS Pavillion | 450–600 m | 2,000–2,300 | 2,500–2,800 |
Sources: PropertyGuru and uchify.com listings (July–October 2026). For a full breakdown of rents across the area, see our JB condo rental price guide near the RTS and CIQ, and for the yield maths, our rental yield guide.
What tenants in this group usually ask for
- Quick road access to the highways towards Kulai, Sedenak and Iskandar Puteri.
- Easy access to Singapore for those who also work across the border.
- Reliable building management, security and parking.
- Gyms, pools and co-working spaces for long working days.
- Malls, food and healthcare within a short drive or walk.
What does the data centre boom mean for Causewayz Square and The Asteriaz?
EXSIM’s three Johor projects are not data centre sites, but they sit in parts of JB that can draw from the wider professional rental pool the sector supports.
Causewayz Square, JB city centre
Causewayz Square (often searched as “Causeway Square JB” or “Exsim CIQ”) is a freehold development on Jalan Lumba Kuda, about 600 m from the JB CIQ and about 800 m from the RTS Bukit Chagar station, with a pedestrian link to CIQ and the RTS proposed by the developer. Its mix of studios, one- and two-bedroom units and dual-key layouts lines up with what single professionals and project staff typically rent. Target completion is around 2030, so buyers are positioning for the market as it will look after the RTS has been running for several years. See the Causewayz Square buyer’s guide for details.
The Asteriaz and The Celestz, Kebun Teh
The Asteriaz and its sister tower The Celestz sit next to KSL City Mall in Kebun Teh. They are not walkable to the RTS; the CIQ is roughly a 10-minute drive, and a shuttle to the CIQ and RTS is proposed. Their larger 3-bedroom layouts and, at The Celestz, triple-key units suit sharers and families as well as professionals who prefer a quieter base with mall convenience. Both are expected to complete around 2029–2030.
In both cases, data centre growth is one demand driver among several, alongside the RTS Link, the Johor–Singapore Special Economic Zone and cross-border commuters. A project’s own location, layout and management will still matter most.
How is Johor managing power and water for data centres?
Johor is moving towards more selective, better-planned data centre approvals, which supports a more sustainable growth path.
The state has set up a Special Technical Committee to assess new data centre projects on water needs, electricity demand, utility infrastructure and site suitability, as reported alongside the Knight Frank Atlas. Knight Frank’s Justin Chee noted that higher electricity and water tariffs can add up to RM120 million a year in power costs for a 50 MW facility, and that operators are investing more in renewable and alternative power. Knight Frank also expects this pressure to speed up substations, transmission links and energy storage. JLL has described the sector as entering a phase of “strategic consolidation” while calling the long-term outlook “highly positive”.
For property, a measured approval process is constructive. It favours fewer, larger, better-capitalised operators, which tend to bring longer-term, higher-skilled employment rather than short bursts of activity.
What indicators should you watch in 2027?
Rather than relying on headlines, a few public indicators show how strongly the data centre economy is supporting JB property.
- Live capacity growth: Knight Frank’s annual Atlas updates Johor’s live capacity and pipeline. How quickly pipeline becomes live capacity says more about real jobs than announcements do.
- Vacancy: As long as vacancy stays low, demand remains firm and operators keep building.
- Official job data: Ministry and state figures, especially the share of skilled roles going to Malaysians, signal local income growth.
- Power and water projects: Substations, transmission and water schemes decide whether the next campuses come online on time.
- RTS Link ridership: Passenger service is targeted for February 2027; how cross-border professionals change their commute will shape city-centre rental demand.
Checklist: investing in JB property with the data centre story in mind
If the data centre economy is part of your reason for buying in Johor, a short checklist keeps the decision grounded.
- Follow official numbers. Track Knight Frank, JLL and government statements on capacity and jobs, and treat announced pipelines as plans, not completions.
- Focus on connectivity. Homes with easy access to highways, JB Sentral, the CIQ and the RTS Link can serve tenants who work at different sites.
- Match the layout to the tenant. Studios and one-bedders for single professionals; dual-key or larger units for sharers and families.
- Budget for furnishing. Professional tenants usually expect fully furnished, ready-to-move-in units.
- Think in timelines. Projects completing around 2029–2030 will enter the market when today’s data centre pipeline is further along.
- Diversify your reasons. The strongest cases combine data centres, the RTS, the JS-SEZ and own-stay value, rather than relying on one driver.
For the latest SPA price list and available units at Causewayz Square, The Asteriaz or The Celestz, WhatsApp us. You can also compare all three on our project comparison page.
Sources
- EdgeProp: Johor leads Asia Pacific data centre pipeline, says Knight Frank (Jul 2026)
- New Straits Times: Johor data centre market and Knight Frank Data Centre Atlas 2026 (Aug 2026)
- The Vibes: 27 approved data centres projected to create 4,053 jobs (Digital Ministry, Oct 2026)
- EdgeProp: Johor emerges as Malaysia’s second-largest residential market, JLL Malaysia (Feb 2026)
- Reed Smith: Singapore and Malaysia officially launch the JS-SEZ (tax incentives)
- PropertyGuru Malaysia: project listings (asking rents)
- Uchify: JB rental listings (Jul 2026)
This guide is general information, not financial advice.