Johor is projected to host 60 per cent of Malaysia’s total data centre capacity by 2030, solidifying its status as Southeast Asia’s digital hub, according to Investment, Trade and Industry Ministry (MITI).
Delivering his keynote at the DayOne Syndicated Financing and Corporate Renewable Energy Supply Scheme signing ceremony on Wednesday (June 11), Minister Tengku Datuk Seri Zafrul Abdul Aziz said the Johor-Singapore Special Economic Zone (JS-SEZ) would drive this transformation, positioning Johor as a regional leader in digital infrastructure.
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NewsTranscript
00:00Congratulations!
00:07And we mentioned Johor a few times just now, Dr. Karol Saleh.
00:14And the state of Johor in particular tells us an even more unbearable story.
00:19In just the first three months this year, the state attracted over 30 billion in investment.
00:26And out of that 30 billion, 90% is going to digital infrastructure.
00:32This is a tangible proof.
00:35Number one, investors are clear about our policies, investors like A1.
00:40Two, we are attracting the right capital.
00:43And three, our vision for Johor as Malaysia's gateway is fast becoming a reality.
00:49And this momentum is set to grow.
00:52By 2030, Johor is expected to grow 60% of Malaysia's total data center capacity.
00:59Cementing its role as the digital hub for Southeast Asia.
01:04The vision is to create a nexus where global technology leaders, emerging unicorns and local entrepreneurs can build and thrive together.
01:14The transformation will be accelerated by the Johor Singapore Special Economic Zone.
01:22And this JSSZ has sped up our pace.
01:27We look at talent attraction as well, scale up our talent attraction.
01:31On supply chains, strengthening our supply chain connections within ASEAN and beyond.
01:36And JSSZ is no longer just keeping up, it's setting the base for digital ambition in the region.
01:43And at the regional level, as ASEAN chair for 2025, Malaysia is also actively driving the adoption of the ASEAN digital economy framework agreement, DEFA.
01:54And DEFA aims to boost digital trade and unlock the potential of our digital economy, which is projected to double to $2 trillion by the year 2030.
02:07So ladies and gentlemen, this $2 trillion pie is right for the picking.
02:13But this may not happen without energy security and sustainability for your operations.
02:19But again, this may not happen without the energy security and sustainability that heavily capitalized projects in mind.
02:27So this is where CRESS comes in, the Proper Renewable Energy Supply Scheme.
02:31It allows hyperscale data centers and big energy users to buy renewable energy directly from producers, in this case A&B.
02:41And the market-driven solution is also where we hope we'll get to that 70% RE target by the year 2050.
02:51To complement this, Malaysia has introduced the guidelines for sustainable and purpose-built data centers.
02:57This is a framework that sets minimum requirements for energy efficiency, water stewardship, carbon management, as well as circular economy, especially what's been practiced in the new data centers today.
03:11This lays down a clear framework for benchmarking of your data center projects.
03:17This is against global sustainability standards.
03:20With more than 70% of major global investors now requiring data center projects to demonstrate robust ESG commitments.
03:29So this will definitely support your own ESG commitments and your own ESG goals, which in turn contributes to our target,
03:37Malaysia's net target of zero.
03:40This is net zero target by 2050.
03:43In short, PRESS, our national guidelines, our NINP-driven renewable targets, and transparent reporting standards are shaping Malaysia,
03:53not just as a hub for digital investment, but also the benchmark for responsible growth in ASEAN.
03:59But truth to be told, none of this matters. It does not also make commercial sense.
04:07According to recent analysis, every $1 investor, or in this case, $1 invested in data centers,
04:13rate $2 in economy's impact.
04:17That multiplier creates real jobs for our people and real opportunities for local SMEs and suppliers,
04:23generating real spending that pranks up our GDP today.
04:30And I hope that later, BCT will be validating what I just said.
04:36And our digital economy is already expected to contribute over 25% of national GDP this year.
04:43In fact, by 2030, our digital investments will catalyze nearly $400 billion in cumulative GDP,
04:51which generates the resources to support everything from AI research to e-health,
04:58as well as improve e-services, digital banking, and e-commerce.