The 500 megawatt (MW) YTL Green Data Centre Park will be a game changer for Johor, which has the potential to develop into a significant worldwide data centre market, says Johor Menteri Besar Datuk Onn Hafiz Ghazi.
According to him, Johor has the potential to grow into a sizable global data centre market because so many data centre operators are choosing to establish their facilities outside of the more developed countries.
"We have grown into a robust technology hub and a desired location for digital investments. Our status as the current regional hub for manufacturing, logistics and big data analytics is definitely a plus point," he said.
Onn Hafiz emphasised that the market for data centres worldwide was estimated to be worth US$187.35 billion in 2020 (US$1=RM4.48) and is expected to reach US$517.17 billion by 2030, with a predicted compound annual growth rate of 10.5 per cent from 2021 to 2030.
He said that with the digital economy predicted to contribute 22.6 per cent of Malaysia's GDP by 2025, Johor does not plan to miss out on that economic opportunity.
The Nusajaya Tech Park and the Sedenak Tech Valley are the other two data centre parks in Johor, in addition to the YTL Green Data Centre Park.
The state government is anticipating the establishment of new data centre parks in the state, Onn Hafiz said in his speech during the launch of Sea Data Centre in Kulai, last week.
The YTL Green Data Centre Park is being built by YTL Power International Bhd, the nation's first independent power producer, who would spend a staggering RM15 billion developing it on 111 hectares in Kulai over a ten-year period.
Onn Hafiz said the YTL Green Data Centre Park is currently the largest data centre park in Malaysia and the first to be powered by renewable energy.
The Sea Data Centre for Singapore's Sea Ltd. is the first stage of the development, which would cost RM1.5 billion and should be completed by the first quarter of 2024.
The 72MW, three-story facility with Tier-III certification is expected to be completed by the first quarter of 2024.
Sea Ltd is a technology company which has key businesses in digital entertainment, e-commerce, as well as digital payments and financial services.
YTL Power managing director Datuk Yeoh Seok Hong said the initial phase of the data centre development signalled a new stage in YTL's relationship with Sea Ltd.
"We are excited to provide world-class, green infrastructure to our partners using our group's deep expertise in solar energy, data centres, telecommunications, construction and property development," Yeoh said.
He added that YTL Power had a goal of making the YTL Green Data Centre Park the biggest and most prosperous of its kind in Asia.