AirTrunk to Invest MYR12 Billion in New Johor Data Centers for AI Workloads

AirTrunk, a leading hyperscale data center operator, has announced a significant investment of MYR12 billion (approximately US$3 billion) for the development of two new facilities in Johor, Malaysia. These data centers, named JHB3 and JHB4, will be located in Iskandar Puteri, near the company's existing JHB1 and JHB2 campuses. This expansion aims to meet the growing demand for digital infrastructure in the region, particularly for high-density cloud and artificial intelligence (AI) workloads.

With the addition of JHB3 and JHB4, which will provide over 280 megawatts (MW) of IT load, AirTrunk's total committed investment in Malaysia will reach approximately MYR27 billion (around US$6.8 billion). This will bring the company's overall IT load capacity across its four Malaysian campuses to more than 700 MW. Johor's selection as a strategic hub is driven by its proximity to Singapore, land availability, and cost competitiveness, factors also highlighted by S&P Global Ratings. The JHB1 and JHB2 campuses, already accounting for over 420 MW of IT load, are almost fully contracted and are tracking ahead of initial investment plans.

Efficiency and Sustainability at the Core of the Design

The new JHB3 and JHB4 campuses are designed to support high-density cloud and AI workloads, a critical aspect for enterprises evaluating the deployment of Large Language Models (LLM) and other AI applications. AirTrunk has stated that the facilities will incorporate energy-efficient designs and advanced cooling systems that utilize 100% recycled water. This approach aims to reduce pressure on local water resources, an increasingly relevant issue in the data center industry.

Malaysia has introduced specific guidelines for data center sustainability, measuring energy and water efficiency through indicators such as Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE). For hyperscale facilities, the guidelines propose a PUE target of 1.4 or lower and a WUE target of 2.2 cubic meters per megawatt-hour or lower. While AirTrunk did not disclose specific PUE or WUE targets for JHB3 and JHB4, the emphasis on recycled water usage and energy efficiency aligns with national policies aimed at managing power and water consumption.

Economic Impact and Strategic Alignment

AirTrunk's investment extends beyond physical infrastructure construction, generating a significant local economic impact. The company has already awarded MYR423 million (approximately US$107 million) in contracts to local suppliers and expects total engagement with Malaysian suppliers to reach MYR5 billion (around US$1.3 billion) once all four Johor campuses are completed. The development of JHB3 and JHB4 is also estimated to create over 3,000 construction jobs, in addition to supporting local employment once the facilities become operational.

Robin Khuda, founder and CEO of AirTrunk, emphasized that JHB3 and JHB4 represent the next phase of the company's expansion in Malaysia, highlighting confidence in the local market and collaboration with the Malaysian government and stakeholders. Malaysia's Deputy Prime Minister and Minister of Energy Transition and Water Transformation, YAB Datuk Amar Haji Fadillah bin Haji Yusof, confirmed that this investment aligns with Malaysia's goal to strengthen its role in digital and AI infrastructure, with a focus on efficiency, sustainability, and clean energy use. Australia's High Commissioner to Malaysia, Danielle Heinecke, also noted that the investment reflects closer cooperation between the two countries in digital infrastructure.

Regional Outlook and Community Engagement

This expansion in Malaysia is part of AirTrunk's broader regional growth strategy, which includes its recent entry into the Indian market with a planned investment of over US$5 billion in the near term. With the addition of JHB3 and JHB4, AirTrunk's operating and planned capacity will exceed 3.3 gigawatts (GW) across 22 campuses in Australia, Singapore, Japan, Malaysia, Hong Kong, and India. This extensive regional footprint positions the company as a key player in the Asian digital infrastructure landscape.

In addition to infrastructure investments, AirTrunk is also committed to community initiatives in Johor. These include multi-year STEM scholarships and industry engagement with Universiti Teknologi Malaysia, as well as support for Johor Digital Literacy Day 2025. The company also collaborates with Gravity Water and Water Watch Penang on rainwater-harvesting projects for schools and with MERCY Malaysia on flood resilience initiatives. For enterprises evaluating AI workload deployment, the availability of efficient and sustainable hyperscale infrastructure like AirTrunk's represents a fundamental enabler, influencing decisions related to TCO and data sovereignty.