Rising data centre demand in Selangor and Johor is reshaping industrial land values, power-ready locations, and long-term investment strategies.
Data Centre Land Demand in Selangor & Johor: What Investors Should Know
The rapid expansion of data centres in Malaysia has placed Selangor and Johor firmly at the centre of industrial land demand. As cloud computing, artificial intelligence, and regional digital services grow, data centre operators are actively securing large industrial land parcels long before construction begins.
Why Selangor and Johor Are Preferred Data Centre Locations
Both Selangor and Johor offer infrastructure advantages that are critical for data centre development. These locations provide scalability, connectivity, and access to essential utilities that many other regions cannot match.
- Strong and expandable power grid infrastructure
- Proximity to major highways, ports, and fibre networks
- Availability of large industrial land parcels
- Lower land cost compared to mature urban centres
Selangor: Mature Infrastructure with Limited Supply
In Selangor, data centre demand is concentrated in industrial corridors with proven power capacity and established infrastructure. However, land supply is becoming increasingly constrained, especially for large contiguous plots suitable for campus-style data centres.
This imbalance has led to rising land values and stronger holding power for landowners who control infrastructure-ready industrial sites.
Johor: Strategic Spillover and Future Expansion Zone
Johor has emerged as a strategic extension of regional data centre growth, supported by its proximity to Singapore and availability of larger land banks. Developers and end users are increasingly viewing Johor as a long-term digital infrastructure hub rather than a secondary option.
Industrial land with good highway access and power scalability is now attracting interest from hyperscale operators planning multi-phase developments.
How Data Centres Are Changing Industrial Land Investment
Unlike traditional industrial users, data centre operators prioritise long-term stability, infrastructure readiness, and expansion potential. This has introduced a new layer of demand that supports land value even during broader market slowdowns.
- Long-term land holding strategies
- Higher entry benchmarks for power-ready sites
- Reduced vacancy risk for strategic locations
What Investors and Landowners Should Consider
Not all industrial land is suitable for data centres, but parcels with zoning flexibility, infrastructure access, and scalability may enjoy future optionality. Investors should focus on fundamentals rather than short-term yield when assessing land in Selangor and Johor.
