The short answer
Johor has most of the demand and most of the grid and water stress. Selangor and Negeri Sembilan are the second wave. Sarawak is the low-carbon outlier: hydro power, a grid emission factor about a quarter of the Peninsula’s, and no federal energy-reporting duty. Since February 2026 new applications must be AI-related. Water is now granted per application and often in part. Site-level facts such as spare substation capacity, flood zones and water per plot are not public, so this guide compares states and zones. It does not rank plots.
Three things decide a site
- Power
- Can TNB connect the load, and when? Green Lane targets 12 months, against 36–48 before it.
- Water
- How much will the state grant? In 2024, Johor granted 21% of requested volumes and Selangor 28%.
- Approval
- Does the project count as AI, and does it meet the state’s cooling and water rules?
Last checked 8 November 2026
Power and grid
Power is the binding constraint. The public record is detailed at national and state level and silent at substation level.
| Fact | Figure | Source |
|---|---|---|
| 2030 data-centre peak demand, Peninsular | 8.39 GW, of which Johor 4.42 GW and Selangor 1.48 GW | Malay Mail, Oct 2026 |
| Supply capacity approved for data centres | 12.3 GW (Aug 2026) | The Star, Oct 2026 |
| Operating data centres, Peninsular | 45 on 6.04 GW (Aug 2026); the minister separately cited 57 centres needing 6,237 MW | Malay Mail |
| Booked versus used | 1,374 MW used of 2,346 MW contracted (58.6%). The minister said operators will have to pay for full contracted capacity; no date or rate given | w.media; The Star |
| Tariff | Ultra-high-voltage band from 1 Jul 2025: 51.18 sen/kWh peak, 47.09 off-peak, before fuel surcharge. An analyst projects about 66.6 sen/kWh effective if a 7.59 sen surcharge applies from Jan 2027 (a projection, not the current rate) | The Star |
| Renewables rule | At least 30% renewable energy for the sector, approved Oct 2026. No effective date; framework still being drafted | Malay Mail; w.media |
| Grid connection | TNB Green Lane Pathway targets 12 months instead of 36–48; 33 projects delivered by Mar 2026 | TNB; The Star |
| Johor grid stress | Shortages at 132 kV intake substations in the Sedenak and Nusajaya clusters; Johor is about 51% of Peninsular data-centre demand | Wood Mackenzie |
| Grid emission factor (kg CO₂e/kWh, 2024 provisional) | Peninsular 0.740 · Sabah 0.539 · Sarawak 0.199 | Energy Commission, Feb 2026 |
- Johor
- 4.42 GW
- Selangor
- 1.48 GW
- Rest of Peninsula
- 2.49 GW
- Peninsular total
- 8.39 GW
Ministry projection, Oct 2026. A 12.9 GW figure in circulation has no traceable source and is not used.
Operating counts differ by scope (45 centres on 6.04 GW, against 57 centres needing 6,237 MW). We show both.
Last checked 8 November 2026
Water
Water is now rationed per application, and Johor sets what reads as a stricter efficiency bar than the national guideline.
| Fact | Figure | Source |
|---|---|---|
| Share of requested water granted, 2024 | Johor 21% (6.10 of 29.1 MLD); Selangor 28% (1.61 of 5.71 MLD) | EdgeProp |
| Approved data-centre water, 2025–2030 | 445.04 MLD across Selangor, Johor and Negeri Sembilan (Oct 2026): 389.04 MLD Johor and Selangor, 56 MLD Negeri Sembilan | The Star; The Vibes |
| Approved for sites already operating | 63.90 MLD (14.36%), as of June 2026 | The Star |
| Data-centre water tariff | RM5.30–5.38 per m³ across Peninsular Malaysia and Labuan: Johor RM5.33 from 1 Aug 2025, Selangor RM5.31 from 1 Sep 2025, plus a capital contribution for supply works | The Star; Malay Mail |
| Reserve margins | Johor about 14.4% (Jun 2026). Selangor fell from 17.4% (Apr 2026) to 16.23% (Aug 2026). The regulator SPAN classes above 15% as high | The Star; Malay Mail |
| Johor’s rules | A state technical committee vets every application. Allowable WUE 1.8 (unit not published). Reclaimed or alternative water required in some cases. Tier 1 and 2 halls not approved since Nov 2025. Evaporative-cooled sites wait until 2027 for water approval | The Star; w.media |
| Reclaimed water | Johor plants: Ulu Tiram 5 MLD (planned to 20), Gelang Patah 4 MLD, fed by treated effluent from Indah Water. Nationally 48.5 MLD now, 118 MLD target by 2030 | The Star; theSun; Malay Mail |
Johor
Selangor
Parliamentary reply via EdgeProp.
If Johor’s 1.8 is in litres per kWh (equal to m³ per MWh), it is stricter than MITI’s recommended 2.2. The state has not published the unit.
Last checked 8 November 2026
Approvals
The approval path is public in outline. No typical timelines are published.
- MIDASingle entry point
Four checks, in parallel
- Energy Focus GroupPower
- SPAN and state water operatorWater
- Local planning authorityPlanning permission
- State data-centre committeeWhere one exists (Johor)
- Data Centre Task ForceDecision, co-chaired by MITI and the Digital Ministry
Our drawing of the published process.
Rule changes, 2025–2026
Johor stops approving Tier 1 and Tier 2 data centres.
GBI Data Centre Tool 2.0 applies to GBI-registered projects. A GBI certificate may support a MIDA application; it is not stated as required.
New non-AI data-centre applications stopped nationally. No written definition of “AI data centre” had been published as of Nov 2026.
Johor will not approve high-water-demand designs; only Tier 3 and 4 air-cooled halls are considered.
The MITI minister told Parliament that technology transfer and unsubsidised, market-priced power will be key conditions, negotiated when investors apply. This is a stated intention, not yet a published rule.
The National Economic Action Council agreed a strategic direction for sustainable data centres and a Digital Infrastructure (Data Centre) Bill, due at Cabinet in 2027.
At least 30% renewable energy for the sector, with no effective date yet.
The task force received more than 40 applications in 2026. Data centres are not a standalone prescribed activity under the EIA Order 2015, though other parts of a project can trigger an environmental assessment. Take legal advice for a specific site.
Last checked 8 November 2026
Efficiency rules
These rules are national and fully public. Hall size decides which design target applies to an incentive application.
| Rule | What it says | Applies to |
|---|---|---|
| PUE (MITI guideline) | Proposed design PUE: 1.4 for hyperscale (132 kV and above, over 21.25 MW); 1.6 for purpose-built colocation built after 2020 in that band; 1.7 for others (0.85 to under 21.25 MW) | Applicants for the DESAC incentive; not an operating limit |
| WUE (MITI guideline) | Recommended design WUE of 2.2 m³ per MWh of IT energy or lower | Same |
| CUE (MITI guideline) | Grid factor × PUE. The guideline uses 0.758 (2021); the current Peninsular factor is 0.740 (2024, provisional) | Same |
| DESAC incentive | New companies: investment tax allowance of 100% (Tier 1) or 60% (Tier 2), or a special tax rate of 10% or 15%. Tier 1 needs RM1bn of capex. Applications close 31 Dec 2027 | Qualifying data centres |
| EECA 2024 | When served written notice: appoint a Registered Energy Manager, run an energy management system, report yearly, audit every five years | Premises using 21,600 GJ or more (electricity and fuels) in any 12 consecutive months; Peninsular Malaysia and Labuan only |
What each hall size means
Assumes 70% average IT load, the guideline’s design PUE, WUE 2.2 and the 0.740 grid factor. This is illustrative arithmetic, not a site estimate.
| IT load | Design PUE band | IT energy / yr | Facility energy / yr | Times the EECA threshold | Water at WUE 2.2 | CO₂e / yr |
|---|---|---|---|---|---|---|
| 5 MW | 1.7 | 30,660 MWh | 52,122 MWh | 8.7× | 67,452 m³ | 38,570 t |
| 20 MW | 1.7 | 122,640 MWh | 208,488 MWh | 34.7× | 269,808 m³ | 154,281 t |
| 50 MW | 1.4 | 306,600 MWh | 429,240 MWh | 71.5× | 674,520 m³ | 317,638 t |
Any site averaging more than about 0.68 MW of total load crosses the EECA threshold, so every serious AI hall in Peninsular Malaysia is covered. Check with MITI whether a band is set by IT load or total load.
Last checked 8 November 2026
Zones, land and incentives
Investment. RM385.7bn of data-centre-related investment was approved from 2021 to H1 2026. These are approvals, not money spent. H1 2026 alone was RM95.8bn for data centres and cloud computing combined, about 44% of all approved investment. By November 2025, Johor had approved 51 projects worth RM182.96bn: 17 operating, 11 under construction and 23 not started.
Peninsular Malaysia
Klang Valley and Negeri Sembilan
South Johor
Sarawak and Sabah
Data-centre zone, approximateCable landing or internet exchange, approximateDistrict outlines only. No plot boundaries and no flood zones.
Data source: Department of Statistics Malaysia (district boundaries). Points placed by Croutons Research from published zone names; approximate.
| Zone | Map | State | Status | Operators named | Announced capacity |
|---|---|---|---|---|---|
| Sedenak Tech Park | 1 | Johor | Operating; YTL and JLand campus announced Aug 2026 | K2, Keppel DC, YTL | “Gigawatt-scale” (no MW given) |
| Kulai (YTL Green Data Center Park, QUANTUM Edge) | 2 | Johor | Operating and expanding | YTL, Microsoft, Princeton Digital | YTL park up to 1.2 GW planned; 150 MW delivered (Jun 2026) |
| Iskandar Puteri / Nusajaya | 3 | Johor | Operating; JS-SEZ flagship zone | DayOne, NTT, Stack, TM | Stack 220 MW planned; DayOne about 500 MW across Johor |
| Johor Bahru (Nusa Cemerlang, Kempas, Tanjung Kupang) | 4 | Johor | Operating and building | AirTrunk, Vantage, Open DC, STT GDC | STT Johor 1: 16 MW on a 120 MW campus |
| Pasir Gudang / Tebrau | 5 | Johor | Secondary corridor | Racks Central, Digital Edge | Racks Central 90 MW by end-2026; 510 MW campus planned |
| Cyberjaya | 6 | Selangor | Operating; new AI campus to 2027 | AIMS, Microsoft, EdgeConneX | AIMS up to 200 MW planned |
| Elmina, Banting | 7 | Selangor | Under construction; land sold | Sime Darby Property, Bridge | Not stated |
| Nilai, Port Dickson | 8 | Negeri Sembilan | Under construction; land acquired | Vena Nexus, Gamuda, Tera | Vena Nexus 350–450 MW (sources differ) |
| Kulim Hi-Tech Park | 9 | Kedah | Planned; 350 MW gas plant on site | Maxland Data | Not stated |
| Bayan Lepas | 10 | Penang | Operating | Open DC | 30 MW |
| Kota Samarahan, Kota Petra | 11 | Sarawak | Announced 2023 and later | FutureData; Zecon with Sarawak Energy | 200 MW (2023 announcement) |
Johor capacity, two counts
| Source | Operational | Under construction | Planned |
|---|---|---|---|
| JLL, Apr 2026 | 850 MW | 1,800 MW | 2,700 MW |
| Cushman & Wakefield, H1 2026 | 1,110 MW | 602 MW | 2,486 MW |
Price per sq ft derived from published area and price. Deals from 2024 to 2026. Download the deals as CSV, free to reuse with credit (CC BY 4.0).
| Date | Location | Buyer | Area | Price | RM psf |
|---|---|---|---|---|---|
| Sep 2026 | Port Dickson, Negeri Sembilan | Tera Data Centers | 221.67 acres | RM1.013bn | 105 |
| Jun 2026 | Tanjung Kupang, Johor | DayOne (conditional; completion expected H2 2027) | about 64 acres | RM398.1m | 142 |
| Apr 2026 | QUANTUM Edge, Kulai, Johor | Hyperscale operator (conditional) | 49.6 acres | RM280.8m | 130 |
| Feb 2026 | Banting, Selangor | Bridge Data Centres | 136 acres | RM740.7m | 125 |
| Dec 2024 | Nusa Cemerlang, Johor Bahru | Data Cloud Innovation | 18.4 acres | RM120.1m | 150 |
| Jun 2024 | East Ledang, Iskandar Puteri | Unnamed global operator | 28.9 acres | RM144.9m | 115 |
Incentives. DESAC (see Efficiency rules) is the incentive built for data centres. The JS-SEZ 5% rate covers AI and quantum supply-chain manufacturing and other sectors, not data centres. Forest City’s 5% rate covers fintech and financial services, not data centres.
Last checked 8 November 2026
Physical risk and connectivity
Flood losses and events are public by state. JPS flood hazard maps are not public, so check flood risk site by site.
- 2025 flood losses were RM636.9m nationally (RM933.4m in 2024), including Johor RM72.1m and Selangor RM52.9m. The December 2021 to January 2022 floods cost RM6.1bn.
- At 8 am on 21 March 2025, 10,763 people were in relief centres in Johor, including 4,291 in Johor Bahru and 1,152 in Kulai.
- NAHRIM projects 0.67–0.71 m of sea level rise by 2100 for Peninsular Malaysia. Under its high-emissions scenario, coastal flooded area grows 76.9%. Johor’s low-lying west coast is exposed.
- 2024 was Malaysia’s fourth-warmest year since 1981 (27.55°C mean). With humidity near 80%, halls need mechanical cooling all year.
- TM’s Sedili station in Johor hosts the Asia Link Cable and will land CANDLE (2028). TM’s Morib station in Selangor is built for up to three systems, including SEA-ME-WE 6.
- KL to Singapore is about 8 ms (8.39 ms average, 8 Nov 2026). Johor to Singapore under 3 ms is a vendor claim.
- MyIX has 118 members and peaked at 2.6 Tbps in 2024. DE-CIX runs exchanges in KL and Johor Bahru.
Heat and rainfall by data-centre district, 2016–2025, are in our climate research.
Data source: Department of Statistics Malaysia. Losses in RM million.
Cable landing stations and internet exchanges are on the zones map.
Last checked 8 November 2026
What this guide does not know
The guide never claims to know any of the following. Each one can only be confirmed for a specific site:
- Spare grid capacity by substation (confirmed by TNB, site by site)
- Flood hazard zones (request JPS data for the site)
- Water allocation per site
- Approval timelines (none published)
- Whether a given project counts as “AI” after February 2026
- Land prices beyond the six published deals
Last checked 8 November 2026
After it’s built: energy per answer
Once a hall is running, the efficiency rules above measure the building. They do not measure the work done inside it. Croutons measures energy, water and carbon per AI answer and reports them in the same MITI and EECA terms, so an operator can show more answers per megawatt.
What a megawatt is worth in Johor
One megawatt of facility power, for one year. Estimates.In a hall where power is the limit, one megawatt’s electricity costs about RM4.4 million a year, while the GPU time it runs sells for about RM50–167 million. The answers a capped megawatt can’t serve are worth roughly 10 to 40 times its electricity bill.
| Per MW, per year | Value | Worked out as |
|---|---|---|
| Electricity | RM4.4m | 8,760 MWh at RM0.50/kWh |
| GPU time, 30% of list price | RM50m | About 2.4m GPU-hours at about RM21 |
| GPU time, full list price | RM167m | About 2.4m GPU-hours at about RM69 |
Assumptions: 1 MW of facility power at PUE 1.4 leaves about 714 kW for IT, enough for about 397 NVIDIA GB200 GPUs at 1.8 kW each at the wall (our estimate, including a share of host and switching). GPUs busy 70% of hours. Electricity at RM0.50/kWh, rounded from the ultra-high-voltage tariff (47.09–51.18 sen/kWh from 1 Jul 2025, before fuel surcharge), with the full megawatt drawn all year, which overstates the bill. GPU time priced from 30% of the Malaysian GB200 list price (Nov 2026) up to full list, about RM21–69 per GPU-hour; large customers pay less than list. Croutons, November 2026.
Last checked 8 November 2026