Quanta predicts 10x AI server growth by 2027, driving liquid cooling adoption in Johor-Singapore SEZ while automotive chip demand falters per Ardentec’s earnings.
As Singapore’s data center moratorium pushes hyperscalers across the strait, Johor’s new liquid-cooled AI clusters reveal Southeast Asia’s blueprint for heat-intensive computing in tropical climates.
From Singapore Saturation to Johor’s AI Corridor
The Johor-Singapore Special Economic Zone (SEZ), finalized on 20 June 2024 through bilateral agreement, has already attracted $1.2 billion in AI infrastructure commitments according to Malaysia’s Investment Development Authority. Quanta Computer Chairman Barry Lam noted during a 18 June press event: ‘We’re entering Phase 2 of AI deployment – where computing density determines regional competitiveness.’
Liquid Cooling Enables Tropical Compute Density
Flex/JetCool’s deployment of 5,000 liquid-cooled racks in Johor this week demonstrates microconvective technology cutting cooling energy use by 40%. Their CTO explained: ‘Our systems enable 200kW+ AI server racks – impossible with conventional air cooling in 35°C average temperatures.’
Semiconductor Supply Chain Shifts
The U.S.-ASEAN Semiconductor Alliance’s 21 June report forecasts $28 billion in regional chip packaging investments by 2026. However, Ardentec’s 19 June earnings call revealed automotive chip testing revenue fell 15% YoY, highlighting uneven sector recovery.
Energy Grids Strain Under AI Demand
Tenaga Nasional Berhad’s 23 June grid upgrade announcement for Johor’s Data Valley corridor comes as analysts warn tropical data centers could consume 3-5% of Malaysia’s electricity by 2030 without radical efficiency gains.
The current AI infrastructure boom follows Southeast Asia’s mobile payment transformation in the 2010s, when platforms like Alipay expanded through partnerships with local banks. Similarly, Johor’s solar-powered data centers build on Malaysia’s 2020 National Renewable Energy Roadmap targeting 31% clean energy by 2025. Previous attempts to establish tech corridors, such as Indonesia’s 2019 plan for Batam data hubs, faced challenges with grid reliability that Johor’s TNB upgrade aims to preempt.
