ZDATA TO LAUNCH MALAYSIA’S FIRST GREENRE PLATINUM DATA CENTRE IN JOHOR WITH RM8 BLN INVESTMENT

JOHOR BAHRU, March 11 (Bernama) -- Chinese digital infrastructure and data centre company, ZDATA Group Co Ltd, is developing Malaysia’s first GreenRE Platinum-certified hyperscale data centre in Johor with an investment of about RM8 billion.

The platinum rating is the highest sustainability rating under the GreenRE scheme, established by the Real Estate and Housing Developers' Association (REHDA).

Director of ZDATA’s wholly-owned subsidiary Computility Technology Sdn Bhd (CTDC), Yeo Yong Hwang, said the project in Gelang Patah will be developed in phases, with the first facility expected to commence operations by the end of March 2026. “The facility is currently the only data centre in the country to achieve this recognition. It also obtained the Malaysia Green Data Centre Recycled Water Certification in August 2025, recognising its use of reclaimed water in large-scale digital infrastructure,” he told a media briefing here today. 

Yeo explained that one of the sustainability features of ZDATA’s facility is its design to run on 100 per cent reclaimed water treated at two water treatment plants located near the data centre. “Although cooling operations require water, the use of reclaimed sources ensures that the state’s domestic potable water supply is not used, reducing pressure on local freshwater resources,” he said.

He said that, in addition to water sustainability, ZDATA’s data centre is designed to meet high energy-efficiency standards and will be largely powered by renewable energy (RE).

Yesterday, CTDC signed a strategic term sheet with BGMC Energy Holdings Sdn Bhd and reNIKOLA Holdings Sdn Bhd to develop a large-scale, long-term renewable energy supply programme, under which solar farm assets will generate RE for the data centre.

According to Yeo, the solar component linked to the project is expected to become operational in 2028. “There will be two sites that together can generate about 630,000 megawatt hours of electricity annually,” he said, adding that the company expects to hire between 400 and 500 people once the data centre is completed, with at least 200 positions to be filled by local talent.

“On March 1, we held a career fair together with Johor Talent Development Council. The response from the public was very encouraging, with about 60 applications received and 17 candidates shortlisted,” he said.

Malaysia marks ZDATA’s first investment destination outside China, with Yeo citing political stability and Johor’s proximity to Singapore as key considerations.

When asked about further expansion in Malaysia, Yeo said the company is currently evaluating opportunities in other states. “So far, nothing has materialised yet, but we are looking into potential locations,” he added.

Meanwhile, Kota Iskandar state assemblyman Datuk Pandak Ahmad, who was present at the event, said Johor has established a dedicated task force to evaluate and facilitate data centre investments in the state. He said the task force, chaired by Johor executive councillor for local government and housing Datuk Mohd Jafni Md Shukor, reviews proposals to ensure projects meet requirements, including efficient water and electricity usage.

“Every proposal is screened and approved based on criteria such as reduced water and electricity consumption, and they must meet Tier 3 or Tier 4 standards,” he added.

Tier 3 and Tier 4 are international data centre standards defined by the Uptime Institute that indicate high levels of reliability and redundancy in power and cooling systems to minimise downtime.

Pandak said Johor aims to position itself as a regional hub for data centre investments, particularly with the development of the Johor-Singapore Special Economic Zone (JS-SEZ). 

He also addressed public concerns about the resource intensity of data centres, noting that newer facilities are adopting technologies to reduce water and electricity consumption.  “People often assume data centres consume large amounts of water and electricity, but many now use recycled water and renewable energy such as solar power,” he said, adding that this helps minimise the impact on local communities.

— BERNAMA