ESR, an Asia-Pacific real asset owner and manager, said on June 15 that the US$1 billion China-ASEAN Investment Cooperation Fund II, has invested in Racks Central.

The investment will support the Singapore-based data center developer and operator.

The expansion will begin in Johor, Malaysia.

Founded in 2014, Racks Central operates a 12-megawatt colocation data center in Singapore. The company is developing a Johor campus comprising four projects with a combined capacity of up to 510 megawatts.

The first phase, a 90-megawatt facility in Pasir Gudang, is targeted to be ready for service in the first quarter of 2027.

Johor’s data center market has benefited from Singapore’s 2019 moratorium on new data centers. Later planning controls also pushed demand across the border.

The Johor market has also drawn interest from major technology companies. However, expansion plans continue to face grid and water constraints.

🔗 Source: ESR