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As Johor’s data centre scene sizzles, new projects face stricter criteria

Applications are now assessed for their potential to offer higher-paying jobs, as the Malaysian state adopts a more selective approval process

 Tan Ai Leng
Published Thu, Oct 24, 2024 · 05:00 AM
    • Brain drain is a major issue for Johor and Malaysia, with many young professionals leaving the country for higher-paying jobs abroad, says Invest Johor chief executive Natazha Harris.
    • Brain drain is a major issue for Johor and Malaysia, with many young professionals leaving the country for higher-paying jobs abroad, says Invest Johor chief executive Natazha Harris. PHOTO: BLOOMBERG

    [KUALA LUMPUR] As Johor’s data centre industry booms, the state has tightened the reins on new approvals, prioritising high-value investments that deliver better-paying jobs for Malaysians, according to a senior executive from the state’s investment promotion agency.

    While these billion-ringgit facilities are drawing significant global interest, they are also straining local resources, such as electricity and water. 

    This has prompted the state government to re-evaluate its approach to approving new data centre projects as global investor interest continues to grow, Invest Johor chief executive Natazha Harris told The Business Times in a recent interview.

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