Vertiv to open new data center manufacturing facility in Malaysia by 2026

“This new facility represents a major milestone in Vertiv’s global manufacturing network. It gives us the scale, flexibility, and proximity we need to meet our customers’ needs quickly and reliably,” says Andrew Whall, vice president of operations at Vertiv Asia.

The need for data center infrastructure in Asia is rising, and suppliers are changing how and where they build equipment to keep up. Vertiv plans to open a new manufacturing facility in Johor, Malaysia, to meet the region's growing need for power and cooling systems. The site is anticipated to be fully operational in the first quarter of 2026.

The Johor facility will produce power and thermal management equipment, including coolant distribution units, as well as modular and prefabricated data center systems. These products are increasingly used as operators roll out larger facilities designed to handle AI workloads, cloud services, and data-heavy applications.

As computing density increases, data center operators are under pressure to deploy infrastructure faster and at greater scale. Power and cooling systems must be delivered quickly, expand without disruption, and fit into both new builds and existing campuses. This has pushed suppliers to rethink their production and supply chains, with more focus on regional manufacturing and shorter delivery times.

IDC's Asia/Pacific (excluding Japan) Datacenter Deployment Model and Spend Forecast shows how fast the market is growing. The firm expects total installed IT power capacity in the region to reach 142,600 megawatts by 2029, growing at a compound annual rate of 22% between 2024 and 2029. Much of this growth is tied to hyperscalers, cloud providers, and digital service firms expanding capacity to meet demand for AI and cloud-based services.

Malaysia is one of several markets seeing increased activity, alongside India, Japan, and parts of Southeast Asia. Across the region, new builds and upgrades are reshaping how data centers are designed. Operators are prioritizing high-density facilities that can support newer compute models, which is also changing how infrastructure components are sourced and delivered.

Johor has become an important part of this shift. Its location next to Singapore, combined with established transport links and dependable utilities, has made it a practical base for companies serving data center projects across Southeast Asia. As Singapore faces limits around land use, power supply, and regulation, Johor is often positioned as a supporting location for both data center operations and the manufacturing behind them.

“This new facility represents a major milestone in Vertiv’s global manufacturing network. It gives us the scale, flexibility, and proximity we need to meet our customers’ needs quickly and reliably,” said Andrew Whall, vice president of operations at Vertiv Asia.

“It also represents Vertiv’s steady investment in continuous growth and manufacturing excellence,” added Whall.

Vertiv says the new facility will add production capacity in the region and help shorten delivery times for customers across Asia-Pacific. The company has also said the site will support newer technologies, including AI and machine learning, and expand its ability to supply modular systems designed for faster deployment.

The expansion also includes hiring plans. Vertiv expects the Johor plant to create up to 500 skilled local roles over the next three years. The factory is expected to use automation to support consistent output and efficient operations, while placing some focus on reducing environmental impact.

Sustainability is playing a larger role in data center planning across Asia-Pacific. IDC points to rising energy use and emissions as key factors pushing operators toward renewable power, improved cooling systems, and more efficient building designs. At the same time, data localization rules are influencing where facilities are built and how they are configured.

As the regional data center market continues to expand, infrastructure suppliers are being asked to deliver systems that can scale without driving up energy use or deployment time. Vertiv's move in Malaysia reflects how manufacturers are adjusting their production strategies as AI-driven workloads place new pressure on power, cooling, and supply-chain speed.