Summary: Malaysia’s Johor state government confirmed that Microsoft is developing a self-build data centre in the Kulai district and that it is currently 40% complete. A government official confirmed it is has also received enquiries from an unnamed Japanese technology company (possibly NTT GDC) which has shown interest in building a data centre in Johor. This is only the second such self-build by Microsoft in the APAC region with its first located in Singapore. Microsoft typically chooses to lease capacity from colocation operators but has increasingly shown the appetite to build its own data centres where it sees a lack of available, quality inventory. Johor’s close proximity to Singapore could also be another driver as well as incentives from the Malaysian government, which likely helps to offset land and power costs. There has been a decent amount of noise surrounding new data centre developments in the Johor and Iskandar area, many of which have not come to fruition.
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