Singapore-based data center operator Racks Central has broken ground on a data center in Johor, Malaysia.

Johor is the country’s southernmost peninsular state and borders Singapore, and its largest city, Johor Bahru, is home to one of the world’s most prominent growth markets.

Racks Central’s campus, dubbed RCJM 1, will be located in Iskandar Halal Park, an industrial park in the eastern portion of Johor Bahru. The company acquired a five-acre plot in the park in October 2024, and the data center is set to offer 90MW of capacity by the end of 2026.

This will be the first of three data centers planned for development in Johor. The next campuses in development – RCJM 2A and RCJM 2B – will each offer 175MW of capacity.

Racks Central bought the land for these larger campuses in March of this year.

The company also intends to build a 95MW campus on the Indonesian island of Batam, which is located south of Singapore across the Singapore Strait.

According to Racks Central’s website, it currently operates one 12MW colocation data center in Singapore.

The company is keen to capitalize on the emerging Singapore-Johor-Batam hub, which sees the latter two making the most out of its cheaper and more abundant resources by way of proximity to fiber-dense Singapore.