The emergence, over the last few years, of the Singapore-Johor AI corridor is a unique case study in economic, policy, and infrastructure development. At the same time, its emergence is emblematic of more profound shifts happening in the global technology and AI landscape. This unique partnership by traditional economic competitors and close neighbors has raised the bar and set a new standard for cooperation between countries and has the potential to shape global debates over technology, power, and influence.
It exemplifies a profound shift in Southeast Asia’s economic integration and digital infrastructure landscape, one that spans infrastructure development, energy security, economic innovation, connectivity, and digital governance. The Singapore-Johor AI Corridor not only has the potential to drive economic growth in both countries and within the Association of Southeast Asian Nations (ASEAN), but also shapes how interconnected economies and technology and AI ecosystems can develop in a new digital global village.
An expanded strategic hub in Asia
Singapore’s traditional preeminence in the data center sector, as one of the key hubs in the Asia Pacific, took a turn in 2019 when the government imposed an informal moratorium on new data centers due to growing concerns over their high energy consumption. The moratorium lasted until early 2022, when Singapore began lifting restrictions with new green conditions and selective approvals under sustainability mandates. From around this time, Johor state in Malaysia began seeing growing interest as a data center destination. Initially regarded as a “spillover” location absorbing excess demand from Singapore, Johor developed in its own right as a data center hub, transforming from a modest 10 MW IT capacity base in 2021 to over 1,500 MW by 2024.
While Singapore’s data center sector remains unmatched in maturity, connectivity, and regulatory sophistication, Malaysia’s competitive land and power costs and energy availability, coupled with fast-tracked approvals under the ‘Green Lane Pathway’, have propelled Johor to one of Asia’s fastest-growing data center markets. Beyond capacity, Johor’s focus on sustainable, diversified energy sources, including on-site power generation, renewables, PPAs, and exploration of small modular reactors (SMRs) is broadening the benefits of AI infrastructure beyond data centers into the energy transition. Johor’s government has recently tightened approval processes, rejecting proposals that failed to meet sustainability or grid-impact standards. This is further complemented by Singapore’s leading focus on data center efficiency, including the launch of the world’s first tropical data center standard (SS 697:2023) by Singapore’s Infocomm Media Development Authority in 2023. The standard encourages higher operating temperatures and improved energy efficiency, providing tailored guidance for data centers in tropical climates.
A New Corridor for US–China Tech Rivalry?
Johor’s rise as a data center hub, while spurred by Singapore’s moratorium, was in significant part also driven by heightened global geopolitical and technological rivalries. Early entrants to the market included DayOne (formerly GDS International) and Bridge Data Centres, both known to be closely affiliated with Chinese hyperscalers such as Alibaba and ByteDance. Their early, multi-megawatt buildouts in Johor subsequently attracted Western data center operators such as Equinix, AWS, and Microsoft to the market. These developments have also been the subject of several international media reports depicting Southeast Asia as a new hotbed for US-China tech rivalry.
Beyond data centers, Singapore and Johor both play vital roles in the global semiconductor supply chain. Singapore accounts for about 20 percent of global semiconductor equipment manufacturing and leads in integrated chip design, fabrication and high-end research, while Malaysia contributes 13% of global chip assembly and testing, reinforcing a complementary hardware ecosystem that underpins the AI economy. As a region, ASEAN is also pushing forward with the ASEAN Framework for an Integrated Semiconductor Supply Chain (AFISS) and Master Plan on ASEAN Connectivity (MPAC) to deepen regional integration and build a resilient, competitive, and interconnected semiconductor value chain.
A Neutral, Trusted Global Node for AI Advancement
Given the deep, multi-faceted economic and technological integration of Singapore and Malaysia with both major powers, in addition to strong historical, cultural, and people ties, it would not be in the best interests of either country to fully align itself with China or the US in the ongoing big power contest. This point seems to be understood by both major powers, and both the US and China have publicly stated they do not expect countries to choose sides. Nevertheless, in the ongoing quest for influence and technological dominance, it is to be expected that both sides would seek to maximize their leverage over the other. Given its strategic significance, the Singapore-Malaysia nexus thus becomes a natural battleground.
How can the region rise above geopolitics? From an AI infrastructure lens, Southeast Asia should seek to remain open to all technologies regardless of origin. Both the US and China, and other players, should be offered the opportunity to build their respective technology stacks – likely with overlapping spheres. By engaging the region openly and transparently, both the US and China can contribute to building an AI ecosystem that is inclusive and resilient. The resulting cross-pollination could not only benefit both sides but also accelerate regional infrastructure development and capacity-building while reducing technological fragmentation. In this regard, the existing strong links between Malaysia and Singapore, spurred by the Singapore-Johor AI corridor, can serve as a model for innovation, governance and constructive competition. It also positions the two countries as trusted intermediaries and neutral ground for critical global discussions on AI governance and ethics.
A Sandbox for U.S.-China Tech Coopetition
From the perspective of the US and China, the prospect of having a neutral ground that accommodates different technology stacks while not compromising on security could be an attractive value proposition. The technological rivalry is likely to last for a significant period of time, and having a neutral ground where competing ecosystems coexist can both sharpen competition and foster collaboration. In a fragmented world divided by geopolitical alignments, this non-aligned posture in Southeast Asia is a refreshing change, and the Singapore-Johor emerging corridor offers a rare example of pragmatic cooperation. It is a demonstration that strategic competition and enlightened cooperation can coexist.
If well-managed and executed, the Singapore-Johor nexus could become a “sandbox” for technological innovation and collaboration in the new global digital economy. Choices made here will ripple far beyond Southeast Asia. In our digital global village where countries and peoples are more interconnected than ever before, amid the AI revolution, how US-China technological “coopetition” plays out will have a far-reaching impact on global economic development, the energy transition, digital sovereignty, and other emerging areas. More than just data centers, the Singapore–Johor corridor will become a live testbed for our shared digital future.
The road ahead
The Singapore–Johor AI corridor offers a unique and cherished opportunity that aligns interests on various levels – national, regional, and global. It has the potential to push boundaries and challenge conventional thinking on economic development and global cooperation. Its success will depend not only on infrastructure buildout and investment, but also on policy alignment and cross-border collaboration on issues ranging from energy to digital governance. Both the US and China have a vested interest in ensuring its success, as a shared experiment in technological innovation and global cooperation. How the Singapore-Johor AI corridor pans out in the coming months and years will be closely watched, both for its impact on the region as well as its implications for the rest of the world.
Tim Lin is the Co-Founder and Partner of The Digital Infrastructure Collective (Asia), an independent research and advisory platform focused on the intersection of AI, energy, and digital infrastructure. With decades of experience spanning technology, finance, and policy analysis, he has advised industry leaders and investors on data centre strategy, capital flows, and regional digital policy. Tim is one of the authors of The Global Data Center Report 2025, which provides independent, Asia-based insights into global compute, energy, and infrastructure trends. He is committed to fostering an informed and balanced regional voice in the global conversation on sustainable digital growth.
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