Microsoft expands data centre operations in Malaysia with nearly S$37M land purchase in Johor

MALAYSIA: Microsoft is investing more in Malaysia by acquiring a 91,249-square-metre plot of land near the Singapore border, accelerating its data centre expansion in the country.

According to Forbes, the plot, located within the Nusa Cemerlang Industrial Park in Johor’s Pulai district, was purchased by Microsoft Payments Malaysia, the company’s data centre arm, for RM119.8 million (S$36.93 million).

This is the company’s fourth land acquisition in Johor. Johor has become a key hub for data centre developments, especially after Singapore’s three-year freeze on new projects due to land and energy constraints.

The southern Malaysian state of Johor, which the British consultancy Knight Frank called the “hottest data centre in Southeast Asia,” attracted about US$32 billion (S$43.36 billion) in digital infrastructure investments in 2024.

The land was sold by Crescendo Corporation, a real estate firm controlled by palm oil tycoon Gooi Seong Lim. In a regulatory filing earlier this week, Crescendo said the sale would “unlock the value of the land at a reasonable price”.

The company, through its subsidiary Panoramic Industrial Development, owns significant land holdings in Johor, a plantation area being developed by Malaysia and Singapore into a special economic zone (SEZ).

Microsoft bought two other plots from Crescendo for RM447.6 million (S$137.99 million) and an additional site in Johor’s Kulai district from EcoWorld for RM402.3 million (S$124.03 million).

Other global players, including AirTrunk, K2 Strategic, led by Malaysia’s richest man Robert Kuok, and a joint venture between Francis Yeoh’s YTL Power and Nvidia, are also expanding data centre operations in Johor.

Microsoft announced plans to invest US$2.2 billion (S$2.98 billion) over four years to boost Malaysia’s digital growth in May. It will join companies like Amazon, Google, and Oracle in expanding there.

Malaysian property firms are benefiting from the data centre boom. Crescendo has also sold land to players like ST Telemedia Global Data Centres in Singapore and Edgnex, which Damac owns. Mr Lim controls two listed firms and chairs Kim Loong Resources, a palm oil producer.

Mr Lim, with a net worth of US$535 million (S$724.85 million), started his career as an aerospace engineer with Canada’s Atomic Agency. /TISG

Read also: JS-SEZ agreement seen drawing in regional firms says OCBC

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