Malaysia's Johor Set to Benefit from Singapore Data Center Constraints
Dow Jones
Aug 27
0201 GMT - Much of the unmet demand for data center capacity in Singapore is expected to shift to Malaysia's Johor state, reinforcing the view that infrastructure availability, rather than demand, will increasingly shape growth in the Singapore-Johor corridor, Fitch Ratings says in a note. Johor's proximity to Singapore, lower development costs and integration through the Johor-Singapore Special Economic Zone should allow it to benefit from Singapore's supply constraints, it says. However, Johor's ability to sustain growth will depend on infrastructure and resource availability. Tighter requirements on power efficiency, water use and renewable-energy adoption could slow capacity additions and raise development costs, but should improve the sector's long-term resilience, it adds.
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