Johor expects RM15bil investment in YTL Green Data Centre Park

KULAI: Johor is expecting RM15bil in investment through YTL Green Data Centre Park, which is located here, over the next 10 years, says Mentri Besar Datuk Onn Hafiz Ghazi.

He added that the green data centre park, within 111.2ha, is the largest in the country with 500 megawatt capacity as well as being the first data centre in Malaysia powered by renewable energy.

“The digital economy is expected to contribute 22.6% to the country’s gross domestic product by 2025, and it is a slice of the economy that Johor does not intend to miss.

“In becoming a strong data centre market globally, the state’s potential hinges on multiple factors.

“We have grown into a robust technology hub and a desired location for digital investments. Our status as the current regional hub for manufacturing, logistics and big data analytics is definitely a plus point,” he said in his speech before officiating the ground breaking ceremony of the Sea Data Centre here yesterday.

YTL Power International Bhd, through its subsidiary, YTL Data Center Holdings Pte Ltd, is investing RM1.5bil for the first phase of the YTL Green Data Centre Park.

Onn Hafiz added that the global data centre market was valued at US$187.3bil (RM837.7bil) in 2020 and is projected to reach US$517.1bil (RM2.3 trillion) by 2030, registering a compound annual growth rate of 10.5% from 2021 to 2030.

He also said there was an increasing pattern of data centre providers choosing to locate their facilities outside of the more advanced markets.

“With the continuous assistance of the Malaysian Investment Development Authority, the state government will do its best to attract investments of this nature and enable Johor to realise its potential to become a regional data centre hub,” he added.

The other data centre parks that are based in Johor are the Nusajaya Tech Park and the Sedenak Tech Valley.

Meanwhile, Sea Ltd co-founder and group chief operating officer Ye Gang said YTL would be able to meet the infrastructure, power and connectivity needs of its operations in the region with the state government and Mida as their key expansion partners.

Targeted to be completed by the first quarter of 2024, the green building will feature 24 data hall suites, mechanical and engineering rooms, office space, storage and parking facilities.

YTL Power managing director Datuk Yeoh Seok Hong said the groundbreaking ceremony marked a new phase of its partnership with Sea Ltd.