Chinese digital infrastructure firm ZDATA Group Co Ltd is slated to launch Malaysia’s first hyperscale AI data centre with the highest sustainability rating under the GreenRE Certification Scheme. Located in Gelang Patah, Johor, the facility carries a GreenRE Platinum certification and represents an investment of roughly RM8 billion.
The project is being developed by Computility Technology Sdn Bhd (CTDC), a wholly owned subsidiary of ZDATA. According to CTDC director Yeo Yong Hwang, the data centre will be built in phases, with the first facility scheduled to begin operations by the end of March 2026.
Malaysia’s First GreenRE Platinum Certified Data Centre
Yeo noted that the facility is currently the only data centre in Malaysia to obtain the Platinum rating under GreenRE, a sustainability certification introduced by the Real Estate and Housing Developers’ Association (REHDA). The project also secured the Malaysia Green Data Centre Recycled Water Certification in August 2025 for its use of reclaimed water in large-scale digital infrastructure.
One of the key sustainability features of the Gelang Patah facility is its cooling system, which is designed to run entirely on reclaimed water. According to Yeo, the data centre will source treated water from two nearby treatment plants rather than drawing from the state’s domestic potable water supply, helping reduce pressure on Johor’s freshwater resources.
In addition to water sustainability, the data centre has also been designed to meet high energy-efficiency standards and will eventually rely heavily on renewable energy. CTDC recently signed a strategic term sheet with BGMC Energy Holdings Sdn Bhd and reNIKOLA Holdings Sdn Bhd to develop a long-term renewable energy programme for the facility. Under the agreement, solar farm assets will be built to supply power to the data centre.
Yeo said the solar component is expected to begin operations in 2028, with two sites projected to generate about 630,000 megawatt hours of electricity annually. According to The Edge Malaysia, the facility is also expected to create between 400 and 500 jobs once fully completed, with at least 200 positions earmarked for local talent.
Additionally, Malaysia marks ZDATA’s first investment destination outside China. Yeo cited the country’s political stability and Johor’s proximity to Singapore as key factors behind the company’s decision, although he added that the firm is currently evaluating other potential locations across Malaysia for future expansion.
Where Have We Heard These Names Before?
If the name of the company and location sounds all too familiar, that is because the very same project was at the centre of Malaysia’s first public protest against a data centre development in early February 2026. To recap, more than 50 residents gathered near the construction site in Gelang Patah to raise concerns about dust pollution and potential impacts on water supply, with some households located less than a kilometre from the project.
Residents claimed that construction activities had significantly worsened air quality in the area, forcing them to clean dust from their homes daily and making it difficult to carry out routine activities such as drying laundry outdoors. Following the protests, ZDATA Technologies issued a response stating that it complies with regulatory requirements and is working with relevant parties to minimise disruption. It also clarified that parts of the project were already in advanced stages, with less intensive construction work taking place in certain phases.
The dispute later led to a townhall session involving residents, local authorities, and project stakeholders, where officials addressed complaints and discussed mitigation measures. Among the measures raised were improved dust control at the construction site, as well as monitoring of noise levels and construction activities to minimise disruption to nearby communities.
Ironically, the project at the centre of those complaints is now also the country’s first data centre to receive the highest sustainability rating under the GreenRE scheme. While the facility itself is touted as environmentally friendly, the same cannot be said for its construction phase, at least according to claims by those affected.
