Johor data centre stock hits 4,198MW as Malaysia leads SE Asia construction: C&W

Johor has strengthened its position as Asia Pacific’s largest data centre market by combined operational and future capacity, reaching 4,198MW overall stock in 1H2026. Malaysia leads Southeast Asia with 1,039MW under construction, of which Johor accounts for 602MW, according to Cushman & Wakefield.

PETALING JAYA (Aug 27): Johor has strengthened its position as Asia Pacific’s largest data centre market by combined operational and future capacity, while Malaysia leads Southeast Asia in data centre capacity under construction, according to Cushman & Wakefield (C&W).

Johor had 4,198MW of overall stock in the first half of 2026, comprising 1,110MW of operational IT capacity, 602MW under construction and 2,486MW in the planning stage, C&W said in its Asia Pacific Data Centre H1 2026 Update. The consultancy defines overall stock as operational, under-construction and planned capacity.

Johor’s operational IT capacity rose 24% from the second half of 2025 to 1,110MW in 1H2026 as additional hyperscale facilities came online. Capacity under construction increased from 315MW to 602MW, while planned capacity rose 19% to 2,486MW. Despite more than 212MW of new operational capacity coming online, colocation vacancy tightened to 0.7%, showing newly completed facilities were absorbed almost immediately, C&W said.

Johor’s development pipeline — comprising under-construction and planned capacity — expanded 29% to 3,088MW during the period, reflecting sustained investment as developers advanced large-scale projects to meet hyperscale and AI-driven demand. The growing share of projects entering construction marked a shift from project announcements towards large-scale delivery, according to C&W.

C&W’s Asia Pacific Data Centre Maturity Index places Johor in its “Powerhouse” category alongside Tokyo, Beijing, Sydney and Mumbai. The consultancy cited Alibaba Cloud’s launch of a new Johor cloud region, AirTrunk’s plans for 280MW of new capacity, the topping out of Digital Halo’s first facility, and US$283 million in financing secured by DayOne Data Centers Singapore for its Johor campus as evidence of continued investment.

Johor’s rapid expansion forms part of a wider Malaysian data centre construction wave. Southeast Asia had 2,382MW of data centre capacity under construction in 1H2026, roughly half of the Apac total. Malaysia led the region with 1,039MW under construction, followed by Thailand with 859MW, according to C&W. Johor’s 602MW alone represents more than half of Malaysia’s current under-construction capacity.

Across Apac, about 1,372MW of new operational capacity came online in 1H2026, while another 7,103MW was added to the development pipeline. The regional pipeline reached 26,455MW, comprising 4,764MW under construction and 21,691MW in the planning stage. Despite that increase, Apac vacancy edged down from 10.9% in 2H2025 to 10.3% in 1H2026, demonstrating the market’s ability to absorb additional capacity amid robust demand, C&W said.