Vertiv Opens Johor AI Cooling Plant As Data Centre Approvals Tighten

Vertiv is manufacturing power and cooling equipment in Johor as data-centre rack densities rise from about 10kW toward 100kW and beyond, while the state becomes more selective about the projects it can support.

The company’s first Southeast Asian manufacturing base, in Senai, is operating in phase one and has been shipping equipment since the first quarter.

Full technical capacity is expected around the second or early third quarter of 2027.

Rising rack density

Paul Churchill, Vertiv’s vice president and general manager for Asia, said the company works closely with Nvidia on power and cooling requirements ahead of each chip release.

At the higher rack densities now being developed, he said, conventional power delivery is no longer sufficient.

Higher-voltage 800V DC designs are appearing first in the United States and are expected to follow in Asia.

The shift is increasing demand for equipment that can support liquid-cooled AI systems and faster deployment.

Vertiv’s roughly 236,000 sq ft facility makes CoolChip coolant distribution units used by liquid-cooled AI racks, along with prefabricated power systems and SmartRun systems.

Vertiv says SmartRun can reduce on-site deployment time by up to 85%.

Regional manufacturing capacity

Manufacturing the equipment inside Asia is intended to shorten lead times and reduce the delay and cost risks associated with shipping from outside the region.

Churchill pointed to freight disruptions over the past couple of years as one reason customers are seeking supply closer to their projects.

Andrew Whall, Vertiv’s vice president of operations and service operations for Asia, said the plant has been operational since the first quarter and has shipped units from its XDU liquid-cooling line for several months.

Phase one is running now.

Later phases will add a new liquid-cooling line and larger SmartRun builds.

Vertiv has not disclosed its investment in the facility.

Churchill described the plant as the first of further stages in Johor.

Malaysia met the company’s criteria for connectivity and local talent, while state agencies helped with the setup.

Johor’s tighter data-centre gate

Vertiv is expanding in a market that is growing but placing tighter conditions on new data centres.

A representative from the Malaysian Investment Development Authority said Malaysia has approved 52 data-centre projects, of which 17 are operational.

The remainder are in construction or approval stages.

Invest Johor said the state is becoming more selective, weighing data centres’ power and water requirements against the needs of other sectors and pressing incoming projects to commit to local suppliers.

Johor has carried much of Malaysia’s data-centre buildout, increasing pressure on its grid and water supply.

Jobs and operating outlook

The Senai plant is targeting up to 500 skilled jobs when fully operational.

Churchill said between 100 and 150 people are currently on the factory floor, and about 98% are Malaysian.

Vertiv had expected to bring in labour from outside the country, he said, but local recruitment drives filled the early roles; local hiring remains the first preference, with skills determining selection.

Asked about warnings that hyperscalers may trim capital spending and whether AI infrastructure is in a bubble, Churchill said he could not really comment.

He described customer demand as “extremely healthy” and said the company sees a three-to-five-year investment runway across Asia.

Vertiv is therefore adding regional manufacturing capacity as Johor weighs how much new data-centre demand its power and water systems can accommodate.