Microsoft Acquires Land in Malaysia for Data Center
Tech giant Microsoft recently acquired a substantial plot of land (over 1 million sq ft) in the Pulai area of Johor, Malaysia, from Crescendo Corporation Berhad (CCB), a local property development firm. While the official purpose hasn't been confirmed, the land restrictions suggest it's likely intended for a data center development.
According to the announcement made by CCB, the land transaction details are set out below:
- Approximately 102,558.3 square meters sold for RM 132,471,276.00 or RM 120.00 per square foot.
- Located in Mukim of Pulai, Johor Bahru. It is strategically situated within a prime industrial estate surrounded by residential, commercial, and industrial developments.
- Can only be used for a medium industry area for data centers and other uses, constructed in accordance with the plans approved by the authority.
This move comes alongside Microsoft's previously announced plans to launch a Malaysian Azure cloud region in Kuala Lumpur. In April 2021, Microsoft announced the "Bersama Malaysia" initiative, a commitment to supporting Malaysia's digital economy. This initiative includes establishing Microsoft's first data center in the country to provide cloud services with data security, privacy, and in-country data storage. The plan also involves training an additional 1 million Malaysians in digital skills by the end of 2023 and establishing the MyDigital Alliance Leadership Council to aid Malaysia's digital transformation goals.
Johor has emerged as a data center hub in recent years, attracting other major players like Yondr, PDG, AirTrunk, Equinix, and Keppel. The Johor land acquisition and their Kuala Lumpur plans suggest that Microsoft is looking to solidify its position as a cloud leader across the entire region.
Investor
Outbound region
Inbound region
Industry
Information technology
(Digital infrastructure)
Date of record
4 April 2024
