Not all industrial land qualifies for data centre use. Here’s a practical checklist highlighting what landowners often overlook before marketing land to data centre operators.
Data Centre Land Checklist: What Landowners Often Miss
With the rapid growth of data centres across Malaysia, many landowners assume their industrial land is automatically suitable for data centre development. In reality, data centre operators apply far stricter selection criteria than most traditional industrial users.
Below is a practical checklist highlighting what landowners often overlook when positioning land for data centre demand.
1. Power Capacity Is Not Optional
Electricity availability is the single most critical factor for data centres. Operators require scalable, stable, and long-term power supply. Being near an industrial zone alone does not guarantee sufficient capacity.
- Existing grid capacity and future upgrade potential
- Proximity to substations or transmission lines
- Redundancy and reliability considerations
2. Land Size and Expansion Potential
Many landowners focus only on current land size, but data centre operators think in phases. They often require room for future expansion, additional buildings, and supporting infrastructure.
- Ability to accommodate multi-phase development
- Contiguous land without fragmentation
- Flexible site layout for campus-style design
3. Zoning and Land Use Flexibility
Not all industrial titles allow data centre usage without additional approvals. Zoning clarity reduces risk and shortens development timelines — a major priority for operators.
- Industrial zoning compatibility
- Local authority development guidelines
- Potential restrictions on building height or usage
4. Accessibility and Infrastructure
Although data centres do not rely heavily on daily traffic, accessibility remains important for construction, maintenance, and emergency response.
- Direct access to major highways
- Road capacity for heavy equipment transport
- Flood risk and ground stability
5. Cooling and Environmental Considerations
Cooling efficiency directly impacts operating costs. Land characteristics and surrounding environment play a larger role than many landowners realise.
- Space for cooling systems and heat rejection
- Buffer zones from residential areas
- Compliance with environmental regulations
6. Long-Term Holding Mindset
Data centre developments are long-term infrastructure assets. Operators prefer landowners who understand long holding periods and stable transaction structures rather than short-term speculation.
Land that meets most — but not all — criteria may still have future potential, but realistic positioning is key.
