Asian Angle | Data centres are booming in Johor. Now comes the hard part – job creation

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Malaysia has been setting itself up as a technology and artificial intelligence (AI) hub in recent years. Data centres – physical facilities that house computing infrastructure like servers and storage – form the backbone of the digital economy, enabling everything from cloud computing to AI-driven applications.

Johor in particular has been named the fastest-growing market for data centres within Southeast Asia and data centres have been described as the state’s next economic frontier. Key players include tech giant Microsoft and computing behemoth Nvidia.

At present, there are a total of 47 planned and operational data centres in Johor. Seven among these were approved between 2021 and mid-June 2024, of which four have been completed and are in operation while another three are in various stages of planning or construction.

The Malaysian government and industry players have touted foreign investment in digital infrastructure as a driver of employment and economic growth. However, concerns surrounding the effect of such investment on the talent landscape remain. These issues span three areas: the number and types of jobs created, the availability of talent, and talent retention.

In line with Malaysia’s aspirations to shift towards a digital economy and in anticipation of job creation in the data centre sector, the Johor Talent Development Council launched the first data centre technician programme on March 1. The initiative aims to fill 200 job vacancies, with monthly salaries ranging from 3,500 ringgit to 4,000 ringgit (US$790-US$900) for a minimum diploma qualification. Some youths commute long distances to Johor to attend this scheme, believing that it unlocks promising career opportunities.

However, the promise of job creation in the data centre sector, especially roles requiring technical skills, may be illusory.