Johor bahru: Chinese digital infrastructure and data centre company, ZDATA Group Co Ltd, is set to launch Malaysia's first GreenRE Platinum-certified hyperscale data centre in Johor, with an investment of approximately RM8 billion. The project, spearheaded by ZDATA's wholly-owned subsidiary Computility Technology Sdn Bhd (CTDC), aims to establish a state-of-the-art data facility in Gelang Patah, expected to begin operations by the end of March 2026.
According to BERNAMA News Agency, the platinum rating is the highest sustainability certification under the GreenRE scheme, initiated by the Real Estate and Housing Developers' Association (REHDA). This will be the only data centre in Malaysia to achieve such a recognition. In August 2025, the facility also received the Malaysia Green Data Centre Recycled Water Certification, acknowledging its use of reclaimed water in large-scale digital infrastructure.
Yeo Yong Hwang, Director of CTDC, highlighted the sustainability features of the facility, which is designed to run entirely on reclaimed water treated at nearby water treatment plants. This approach ensures that the data centre does not impact the state's domestic potable water supply, thereby reducing pressure on local freshwater resources. Additionally, the centre is designed to meet high energy-efficiency standards and will be significantly powered by renewable energy (RE).
CTDC recently signed a strategic term sheet with BGMC Energy Holdings Sdn Bhd and reNIKOLA Holdings Sdn Bhd to establish a large-scale, long-term renewable energy supply programme. Solar farm assets developed under this agreement are anticipated to generate about 630,000 megawatt hours of electricity annually by 2028. The project is expected to create between 400 and 500 jobs, with at least 200 positions to be filled by local talent.
Malaysia represents ZDATA's first venture outside China, with Yeo citing political stability and Johor's proximity to Singapore as major factors in their decision. Although the company is exploring further expansion opportunities within Malaysia, no additional projects have been confirmed yet.
Kota Iskandar state assemblyman Datuk Pandak Ahmad, who attended the announcement, stated that Johor has formed a dedicated task force to evaluate and facilitate data centre investments. The task force, chaired by Johor executive councillor for local government and housing Datuk Mohd Jafni Md Shukor, ensures proposals meet criteria such as efficient water and electricity usage and adhere to Tier 3 or Tier 4 standards, which denote high levels of reliability and redundancy in power and cooling systems.
Johor aims to establish itself as a regional hub for data centre investments, particularly with the development of the Johor-Singapore Special Economic Zone (JS-SEZ). Pandak addressed public concerns regarding the resource intensity of data centres, noting that modern facilities are increasingly adopting technologies to reduce water and electricity consumption, thereby minimizing their impact on local communities.