Microsoft continues expanding its digital infrastructure footprint in Southeast Asia with a major land acquisition in Malaysia. The tech giant’s local subsidiary has purchased 123 acres in Johor’s Kulai district for RM402.3 million ($85.2 million) from property developer EcoWorld, marking its second significant land deal in the region this year. The strategic purchase signals Microsoft’s growing commitment to Malaysia as a key hub for its cloud and AI services in the region.
The newly acquired site within Eco Business Park VI will be developed into data center facilities, adding to Microsoft’s expanding network of digital infrastructure in Johor. This transaction follows the company’s April purchase of a 1.1 million sq ft plot in Pulai from Crescendo Corporation Berhad, demonstrating Microsoft’s aggressive expansion strategy in southern Malaysia. The Johor region has become increasingly attractive for data center operators due to its proximity to Singapore and more favorable development conditions.
EcoWorld highlighted the significance of attracting a global technology leader to its business park, anticipating the deal will boost demand for surrounding industrial properties. The developer plans to reinvest the proceeds into acquiring additional landbank, particularly in the thriving Iskandar region. Microsoft’s growing presence aligns with its recent $2.2 billion commitment to develop cloud and AI infrastructure in Malaysia over the next four years, though its planned Kuala Lumpur Azure region announced in 2021 remains unrealized.
Johor’s data center market continues flourishing as operators seek alternatives to Singapore’s constrained capacity. The state now hosts facilities from major players including Equinix, AirTrunk, and Keppel, creating a competitive digital infrastructure landscape. Microsoft’s latest investment reinforces Johor’s emergence as Southeast Asia’s secondary data center hub while supporting Malaysia’s broader digital transformation ambitions.