Microsoft is increasing its investment in Malaysian data centers with the purchase of another plot of land in Johor. Its data center arm, Microsoft Payments Malaysia, acquired a 91,249-square-meter site in Nusa Cemerlang Industrial Park from Crescendo Corp. for 119.8 million ringgit ($27 million).
This is Microsoft’s fourth land acquisition in Johor, a state experiencing a surge in data center development. The location, near Singapore, has become a key hub due to constraints on new projects in the city-state.
Forbes reported that the land was purchased from Crescendo Corp., a real estate developer controlled by Malaysian businessman Gooi Seong Lim. Crescendo has sold land to other data center companies, including ST Telemedia Global Data Centres and Edgnex.
Johor has emerged as a prime location for data centers, attracting significant investment due to its proximity to Singapore and the availability of land. Singapore’s three-year moratorium on new data center projects, implemented due to renewable energy and land constraints, has redirected development to neighboring Johor. This shift has fueled a surge in data center construction and attracted major tech players seeking to establish or expand their presence in Southeast Asia.
The land acquired by Microsoft from Crescendo Corp., a real estate developer controlled by Malaysian businessman Gooi Seong Lim, is strategically located near the Singapore border. Crescendo has capitalized on the rising demand for land in Johor by selling plots to various data center companies, including ST Telemedia Global Data Centres and Edgnex, in addition to Microsoft. This divestment strategy allows Crescendo to unlock the value of its land holdings in the rapidly developing industrial park.
Microsoft’s previous land acquisitions in Johor include purchases from both Crescendo and EcoWorld. Moreover, Microsoft is not alone in recognizing the potential of Johor as a data center hub. Other prominent companies, including STACK Infrastructure, Airtrunk, Yondr Group, K2 Strategic, and a joint venture between YTL Power and Nvidia, are also establishing or scaling up their operations in the state.