CAF II Invests in Racks Central to Advance Southeast Asia Data Centre Corridor

• Investment supports the expansion of next‑generation, energy‑efficient data centres across the Singapore–Johor–Batam corridor to meet AI and hyperscale demand

Artist’s impression of the Racks Central Johor AI Campus in Pasir Gudang, Malaysia. The first phase (RCJM 1, 90 MW) is targeted for ready-for-service by Q1 2027, with the campus scaling to a combined capacity of up to 510 MW

SINGAPORE, 15 June 2026 – ESR, an Asia‑Pacific focused real asset owner and manager, acting as sub‑investment advisor to the US$1 billion China‑ASEAN Investment Cooperation Fund II (“CAF II”), today announced a strategic investment by CAF II into Racks Central, a Singapore‑headquartered data centre platform with a growing regional footprint.

The investment will support Racks Central’s overseas expansion, starting with Johor, Malaysia, building on its established colocation operations in Singapore. The investment will strengthen Racks Central’s ability to deliver large‑scale, AI‑ready and energy‑efficient data centre capacity to hyperscalers, cloud service providers, and enterprises across Southeast Asia.

Jeffrey Shen, Co-founder and Co-CEO, ESR, said, “The rapid acceleration of AI adoption and digital transformation is fundamentally reshaping data centre requirements across Asia-Pacific. As sub‑advisor to CAF II, and with ESR’s data centre development expertise across a pipeline of over 3 GW, we are pleased to support Racks Central’s transformation to a scalable, regional data centre platform for hyperscale and enterprise customers.”

Bobby Wee, Founder and CEO, Racks Central, said, “We are pleased to welcome ESR and CAF II as strategic partners. Their capital commitment and infrastructure expertise will support our ambition to develop a seamless, AI‑ready data centre corridor across Southeast Asia, enabling our customers to scale efficiently as regional digital demand continues to grow.”

Southeast Asia is experiencing sustained growth in AI adoption, cloud computing, and digital innovation, driving the next wave of demand for scalable, high‑performance data centre infrastructure¹.

Founded in 2014, Racks Central currently operates a 12 MW colocation data centre in Singapore, serving enterprise and cloud customers. As part of its strategy to develop an AI‑ready data centre corridor across key data centre hubs in Southeast Asia, the company is building a campus in Johor, Malaysia, comprising four large-scale developments with a combined capacity of up to 510 MW.

Sustainability considerations are embedded across Racks Central’s developments, including energy‑efficient design, advanced cooling solutions, and responsible resource management.

¹ e-Conomy SEA 2025 report by Google, Temasek, and Bain & Company