STACK Infrastructure Advances 120MW Johor Bahru Data Center Project to Capture Growing Cloud and AI Demand

STACK Infrastructure has shared an update.

The company reported construction progress on its first 120MW data center in Johor Bahru, Malaysia, which will be supported by a 300MW on-site substation. Power delivery to the site is expected in early 2026, with the first phase of the data center scheduled for completion in Q1 2027. STACK highlighted accelerating demand in the Johor Bahru market and positioned the campus as suited for cloud and AI deployments, citing strong connectivity and scalable power.

For investors, this development signals a significant capacity expansion in a strategic Southeast Asian market that is emerging as an alternative and complement to Singapore for hyperscale and AI workloads. The planned 120MW data center, backed by a larger 300MW power infrastructure, suggests that STACK is targeting large cloud and AI customers that require high-density, scalable solutions. The multi-year build timeline indicates that associated revenue contributions are likely back-end loaded, beginning after initial power availability in 2026 and ramping more materially following the Q1 2027 phase-one delivery.

Capital requirements for such infrastructure are substantial, implying ongoing investment and potential impacts on leverage or funding needs, depending on STACK’s capital structure and financing strategy. However, if demand in Johor Bahru continues to accelerate as indicated, the campus could enhance STACK’s competitive position in the regional data center market, support long-term contracted revenues with hyperscale clients, and diversify its geographic footprint. Execution risk around construction timelines, power delivery, and customer commitments remains a key factor to monitor, but the project underscores the company’s intent to capture growth from AI and cloud-driven infrastructure demand in Asia-Pacific.