Johor is rapidly emerging as Southeast Asia’s next major data center hub, with a flurry of land deals signaling growing investor confidence in the region. Recent transactions by Malaysian real estate firms UEM Sunrise and Crescendo Corporation highlight the state’s strategic appeal, particularly for developers looking to capitalize on its proximity to Singapore and expanding digital infrastructure.
UEM Sunrise has sold nearly 30 acres of land in Johor Bahru to an undisclosed global data center operator for approximately RM144.9 million. The deal, involving two freehold parcels in Iskandar Puteri, underscores the company’s push to support Johor’s data center ecosystem. Earlier this month, UEM also partnered with Logos, an ESR-owned firm, to explore a 360MW data center campus in Gerbang Nusajaya, further cementing its commitment to the sector.
Meanwhile, Crescendo Corporation has offloaded a 20.46-acre industrial plot in Pulai to Digital Halo, a Singapore-based operator backed by Arch Capital. This follows Crescendo’s earlier sales to major players like Microsoft and STT GDC, reinforcing Johor’s status as a magnet for hyperscale and colocation providers. Digital Halo, led by former Keppel executive Kai Goh, is also developing a 70MW campus in Manila, indicating broader regional ambitions.
Singaporean telco Singtel is reportedly in discussions to establish a data center in Iskandar Puteri through its Nxera unit. With existing facilities in Singapore, Indonesia, and Thailand, Singtel’s potential expansion into Johor aligns with its strategy to grow its regional data center footprint. The move comes as Johor benefits from spillover demand, given Singapore’s limited capacity for new developments.