Why is Princeton Digital Group's flagship AI data centre in Johor a boost for Malaysia?

• 150MW JH1 positions Malaysia as a regional hub for AI-ready data centres
• Merges tech innovation with local talent to boost country’s digital growth

Princeton Digital Group's (PDG) recent unveiling of the first phase of its JH1 data centre campus in the southern-most Malaysian state of Johor marks a significant milestone in the country’s digital infrastructure landscape. This development positions the country as a strong contender in the region's rapidly growing AI and cloud computing sector. Furthermore, the swift completion of this 52MW project, part of a larger 150MW complex, demonstrates PDG's execution capabilities and Malaysia's willingness to embrace and facilitate cutting-edge technical investments.

Located in Sedenak Tech Park (STeP), PDG's JH1 campus is dubbed as one of Southeast Asia's largest data centre facilities. As PDG's flagship AI-ready centre in Malaysia, it caters to global hyperscalers and enterprises with intensive computational needs. This facility is part of PDG's broader Asian portfolio, which spans 21 data centres across 15 cities in 6 countries, positioning the company as a critical infrastructure provider in the region's rapidly growing digital economies. 

In a media briefing held at the campus last week, Asher Ling , chief technology officer and managing director Of PDG Singapore (pic) told reporters that the Johor campus benefits from excellent connectivity, access to multiple fibre routes, and proximity to major regional data networks. "Johor offers a unique combination of connectivity, infrastructure, and talent, making it an ideal location for our latest data centre campus," he impressed.

Ling highlighted that while traditional factors like power, land, and space remain crucial, two new considerations have emerged as critical: access to renewable energy and scalability. Ling praised Malaysia's forward-looking National Energy Transition (NET) plan, noting its alignment with regional sustainability goals.

The NETR sets ambitious targets for Malaysia, aiming to achieve net-zero emissions by 2050. The plan outlines a gradual increase in renewable energy shares, targeting 31% by 2025, 40% by 2035, and an impressive 70% by 2050.

The facility, completed within 12 months of starting construction in 2023, is also part of PDG's innovative SG+® strategy which aims to create a seamlessly integrated data centre ecosystem spanning Singapore, Batam, and Johor. This approach offers unprecedented flexibility to hyperscalers and large enterprises in their infrastructure deployment.

Ling also stressed the importance of scale, explaining that today's data centres require significantly larger land parcels to meet the growing demands of AI and digital services. "The JH1 facility is designed to meet the increasing demands for high-performance computing and data storage, driven by the rapid growth of AI and digital services," Ling added, underlying PDG's commitment to future-proofing their infrastructure.

For context, STeP is located in Johor's Kulai district, just 70 kilometres north of Singapore. It offers low-latency connectivity to key markets for data centres operating in the park. This prime positioning, abundant land, and cheaper power have attracted major players like Nvidia, AirTrunk, GDS International, and YTL Power alongside PDG. So much so that Southern Johor is emerging as a regional data centre hub, positioning Malaysia at the forefront of the AI revolution while attracting global tech investments.

What sets JH1 apart?

Since the JH1 campus is engineered to meet the intense demands of AI workloads, it features innovative cooling technologies that balance performance with sustainability. Ling emphasised the facility's cutting-edge capabilities, noting, "We're pushing the boundaries of air-cooled solutions, with our server racks capable of handling up to 40 kilowatts of power consumption and heat dissipation per rack. This is far beyond the traditional norm of 5-10 kilowatts per rack seen in many data centres."

JH1's high-density computing environment uses advanced air cooling systems to efficiently manage the substantial power demands of AI processing while minimising environmental impact. In May, before launching the first 52MW phase of JH1, PDG secured a US$292 million (RM1.28 billion) green loan from Maybank, Standard Chartered Bank, and UOB Malaysia. This loan, PDG's first aligned with its green finance framework, marks a significant step towards reducing resource consumption and emissions in regional AI infrastructure. It demonstrates PDG's commitment to sustainable practices in developing and operating data centres for AI and high-performance computing.

When asked how PDG integrated sustainability into the core design of JH1, Ling shared that they have installed solar panels on the rooftops and will continue doing so for future phases, leveraging Malaysia's abundant sunlight to generate renewable energy on-site. This aligns with the country's National Energy Transition Roadmap and demonstrates PDG's commitment to reducing its operations' carbon footprint.

Furthermore, the facility incorporates energy-efficient chillers and other state-of-the-art cooling technologies. "We've invested in the most efficient chillers available, even though they come at a higher upfront cost. The long-term benefits of energy savings and reduced environmental impact make it worthwhile," Ling noted.

Another aspect of JH1's design is how it incorporates flexibility for future upgrades. "We've built the flexibility to accommodate next-generation liquid cooling solutions as AI computing demands continue to evolve," Ling shared. Strategically speaking, a forward-thinking approach ensures that JH1 can adapt to emerging technologies, making it a long-term asset for Malaysia's digital economy.

The economic impact so far

The economic impact of PDG's investment extends far beyond the facility itself. As Ling revealed, PDG has employed about 90 staff. "And we're going to grow between 300 and 400 in the very, very near future," he said, adding that this job creation, particularly in high-skilled tech roles, is a significant boost to Malaysia's workforce development in the digital sector.

Moreover, PDG's commitment to nurturing local talent is evident in its hiring practices and training initiatives. Ling proudly shared, "When we first started, we had no Malaysian staff. Today, on our PDG Malaysia team, I am proud to share that 70% of our team are Malaysians."

According to Ling, the focus on local talent extends across various disciplines critical to data centre operations. Ling elaborated on the diverse skill sets required: "We need mechanical engineers, electrical engineers, IT engineers, network engineers, and project managers who know how to do a build. And then you have a separate team that knows how to operate."

PDG's talent development approach is multifaceted, combining immediate hiring strategies with long-term talent pipeline development. Specifically, PDG has been innovative in identifying and attracting talent from adjacent industries. Especially in recognising the need to develop the next generation of data centre professionals, PDG has established partnerships with local educational institutions.

"We've embarked on a graduate engineering training program with UTM in Johor, and it is like an apprenticeship model where you work in a live data centre environment with excellent mentors that can teach you and guide you and perhaps enable the development of a career," Ling shared.

Overall, the launch of PDG's JH1 campus represents more than just a new data centre in Malaysia. It signifies a pivotal moment in the country's digital transformation journey. By combining cutting-edge AI capabilities, sustainable design, and a strong focus on local talent development, projects like JH1 are laying the groundwork for Malaysia to become a key player in the global digital economy.

As the demand for AI and cloud computing continues to grow, Malaysia's emerging data centre hub in Southern Johor could play a crucial role in shaping the region's technological landscape. The success of such projects will likely depend on continued collaboration between private sector investments, government support, and educational institutions to build a robust ecosystem that can sustain long-term growth and innovation in the tech sector.