The World Bank Group’s International Finance Corporation (IFC), Malaysian state-owned investment company Permodalan Darul Ta’zim (PDT), and Malaysian renewable developer Ditrolic Energy have partnered on a $6 billion renewable energy megaproject in Southern Johor.

The project aims to support the state’s position as a growing hub for hyperscale data centers.

The Southern Johor Renewable Energy Corridor (SJREC) will span approximately 2,000 sq km (772 square miles) across the Kota Tinggi and Mersing districts. It will comprise a solar-and-storage development zone intended to supply clean electricity to local industry and support power exports to Singapore. The project forms a central pillar of the newly launched Johor Renewable Energy Policy 2030 and the Johor–Singapore Special Economic Zone (JS-SEZ) masterplan.

The initial buildout is expected to include up to 4GW of solar capacity and 5.12GWh of energy storage across a 10,000-acre site. Officials claim the corridor is designed to meet the accelerating demand from multinational manufacturers and data center operators expanding in Johor.

“The SJREC was conceived as the cornerstone of this policy, specifically Strategy 1, to unlock the immense solar potential of the Kota Tinggi and Mersing districts,” said PDT president and group CEO Ramlee bin A Rahman. “By partnering with global leaders like IFC and Ditrolic Energy, we are operationalizing the SJREC not only to power the JS-SEZ, but to actively facilitate cross-border energy trading.

“This project confirms Johor’s readiness to serve as a primary renewable energy hub for the ASEAN Power Grid, realizing the vision we set forth for a sustainable, high-growth future,” he continued.

The partners contend that the corridor will support the ASEAN Power Grid (APG) initiative through enabling clean-power transmission across borders, primarily to Singapore.

Judith Green, World Bank Group country manager for Malaysia, said the plan will support Johor’s wider sustainability goals while strengthening regional energy flows. “Not only will this project support the broader sustainable development ambitions of Johor, it will also create jobs, potentially attract foreign direct investment, while facilitating cross-border clean energy trade between two key ASEAN economies, bolstering the broader ASEAN Power Grid initiative.”

Located in Malaysia’s south, Johor is just across the border from Singapore. It has benefited from a moratorium on new data center developments in Singapore, which has made the region a crucial data center hub. Developers and operators in Johor include PDG, AirTrunk, Equinix, Keppel, ChinData's Bridge DC, and Yondr.

Earlier this month, Microsoft detailed plans for its second cloud region in Malaysia, set to be located in Johor. No launch timeline was provided, though the company previously confirmed only two Asia regions would launch in 2026: India and Taiwan.