Vertiv Holdings, a major US manufacturer of power and cooling systems for data centres, has officially opened its first factory in Southeast Asia, located in Johor. The plant will produce equipment used to keep data centres running across Southeast Asia, North Asia, Australia and New Zealand, and is expected to be fully operational by 2027.

The opening is the latest in a wave of investment from global technology companies into Malaysia's data centre and artificial intelligence infrastructure sector, which has expanded rapidly over the past two years as firms look to build capacity close to fast-growing Asian markets. Johor, situated just across the border from Singapore, has become one of the region's fastest-growing hubs for this kind of investment, attracting commitments from major hyperscale cloud providers as well as equipment suppliers like Vertiv.

The Malaysian government has set aside significant funding under its Budget 2026 allocations to support the wider technology ecosystem, including talent development and a sovereign AI cloud initiative, as it positions the country to become a competitive regional hub for AI infrastructure and services. Analysts say the growth of the sector is expected to create thousands of skilled jobs in engineering, construction and technical operations in the years ahead.

Key Details

  • Vertiv's first Southeast Asian manufacturing plant, located in Johor
  • Produces power and cooling equipment for data centres
  • Expected to be fully operational by 2027

Why Johor

  • Sits just across the border from Singapore
  • Has become one of the region's fastest-growing hubs for data centre investment

The Bigger Picture

  • Budget 2026 sets aside funding for the wider tech ecosystem, talent development and a sovereign AI cloud
  • Sector growth is expected to create thousands of engineering, construction and technical jobs