Johor pauses data centre project in first stop-work order after complaints, reassures digital push stays on track AURORATOTO GROUP

JOHOR BAHRU: Johor has issued its first-ever stop-work order on a data centre project, signalling that while the state welcomes digital investments, developers must play by the rules.

The project, located within the Iskandar Puteri City Council (MBIP) area, was halted after public complaints about late-night construction, dusty and dirty roads, and the lack of proper hoardings to shield residents from ongoing works.

State Housing and Local Government Committee chairman Datuk Mohd Jafni Md Shukor said the action shows Johor’s commitment to balancing rapid growth with community well-being. “As a mark of firmness, this data centre has become the first in Johor to be issued a stop-work order for breaching the stipulated conditions,” he said in a statement reported by Bernama.

Contractors have been given two weeks to meet five conditions, including halting earthworks, ceasing night operations, keeping roads clean, putting up hoardings, and ensuring nearby residents are not negatively affected.

Digital Johor still on track

Despite the enforcement move, Mohd Jafni stressed that Johor’s digital push remains a priority. Data centres are seen as a key pillar of the Digital Johor agenda and the Johor-Singapore Special Economic Zone (JS-SEZ), especially since the state has been positioning itself as a regional digital hub.

Bernama reported that Johor currently has 13 operational data centres, with another 15 under construction across Johor Bahru, Iskandar Puteri, and Kulai. In total, the state has approved 14 more projects, while eight new applications are under review. To support this, Johor is offering more than 7,600 acres of industrial land designated for data centre development, including 600 acres in Kulai’s IBTEC area.

“The goal is to make Johor a progressive, inclusive and sustainable digital economy,” Mohd Jafni added, noting that approvals will be capped in certain urban areas to avoid land-use conflicts and ensure adequate infrastructure.

Read related: Johor’s data centre boom set to drive 18-fold surge in water demand, pushing shift to reclaimed wastewater

What this means for Singaporeans

At first glance, a stop-work order might sound like a hiccup in Johor’s big digital push. But in reality, it shows that Johor is serious about doing things the right way, and that’s good news for both investors and residents on both sides of the Causeway.

For Singaporean investors, especially, it’s a reassurance. Instead of projects being rushed through at the expense of infrastructure or neighbourhoods, Johor is showing that it’s willing to hit pause to make sure the basics, like clean roads, proper safety measures, and community well-being, are in place.

Beyond investments, ordinary Singaporeans could also feel the ripple effects. Johor’s fast-growing data centre industry, built under the Johor-Singapore Special Economic Zone (JS-SEZ), is expected to complement Singapore’s own digital economy.

Think of it as extra capacity, more affordable land, and new energy solutions right across the border,  all of which can help support Singapore’s role as a global tech hub. At the same time, Johor’s stricter enforcement ensures this growth doesn’t spiral into problems like pollution, traffic or poorly managed developments that could affect both Johoreans and the cross-border community.

Balancing progress with people

This move sends a clear message for the people, developers, and investors: progress should never come at the expense of the masses; the people’s interests and well-being should always be a priority and not neglected. While developers see Johor as a prime spot for land and resources, the state is making sure ordinary residents don’t end up paying the hidden price of unchecked growth.

This stop-work order is both a signal to big tech players and a comfort to the public. Johor seeks to make its progress sustainable and beneficial to everyone, not just fast-tracked for short-term gains.

For Singaporeans watching this closely, it’s a reminder that Johor’s rise as a digital hub isn’t just about shiny new data centres. It’s about building a neighbour that grows responsibly — which, in the long run, benefits both sides of the Causeway.

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