Racks Central Breaks Ground on 90MW Data Center in Malaysia's Johor State December 11, 2025 Singapore-based data center operator Racks Central has begun construction on a new campus in Johor, Malaysia, marking a significant expansion for the company and a vote of confidence in the emerging Singapore-Johor-Batam digital infrastructure hub. The move underscores a broader industry trend of operators seeking capacity in markets adjacent to major hubs like Singapore, where land and power constraints have prompted a regional search for scalable, cost-effective locations. The groundbreaking ceremony for the facility, designated RCJM 1, took place in the Iskandar Halal Park industrial zone in eastern Johor Bahru. Racks Central acquired the five-acre plot for this project in October 2024. The company plans to bring the first phase of the campus online by the end of 2026, at which point it will offer 90 megawatts (MW) of IT capacity. This initial 90MW facility is just the first part of a larger strategic plan. Racks Central has already secured land for two subsequent campuses, RCJM 2A and RCJM 2B, which are slated to deliver a combined 350MW of capacity. The company also holds intentions to develop a separate 95MW campus on the Indonesian island of Batam, further solidifying its footprint across the strategic straits from Singapore. Currently, Racks Central operates a single 12MW colocation data center in its home market. The development is strategically positioned to capitalize on the growing demand for digital infrastructure in Southeast Asia, particularly from hyperscalers and enterprises requiring proximity to Singapore's dense fiber networks. By establishing a presence in Johor, Racks Central aims to offer clients a viable alternative with more abundant resources while maintaining low-latency connectivity to the city-state. This expansion not only diversifies the operator's portfolio but also contributes to the maturation of Johor as a competitive data center destination, following recent announcements from other major technology firms regarding investments in the region. Source: datacenterdynamics
Singapore's Racks Central Commences Construction on Major Data Center Campus in Johor, Malaysia
