Johor aims to generate an additional 5 GW of solar energy by 2031 to meet surging electricity demand from rapid data centre development.
ISKANDAR PUTERI: The Johor government is targeting the generation of about 5 gigawatts (GW) of solar energy over the next four to five years as a long-term solution to meet the surge in electricity demand driven by the rapid growth of the state’s data centre sector.
State Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han said the strategic move is to ensure the national grid capacity remains robust and capable of balancing industrial and public utility supply requirements following concerns raised in a report by research firm BMI.
BMI, a Fitch Solutions company, estimated that Johor’s data centres would require about 30 terawatt-hours (TWh) of electricity annually by 2031, accounting for 18 per cent of Peninsular Malaysia’s total electricity supply — up from six per cent this year.
On the investment status to date, Lee said the Johor government has approved 65 data centre projects based on land plots.
“Of these, 21 data centres have started operations and they are expected to consume nearly 1.1 GW of electricity, while projects that are still under construction or in the planning stage will require an additional 4 GW to 5 GW,” he told the media prior to the closing ceremony of the JTDC Mega Job Fair at the Tunku Mahkota Ismail Youth Centre in Iskandar Puteri today.
Lee said that to ensure the large-scale electricity consumption does not disrupt public utility supply, the state government has established the Johor State Data Centre Development Coordination Committee (JPPPDNJ), which is chaired by Johor Housing and Local Government Committee chairman Datuk Mohd Jafni Md Shukor, with Lee serving as deputy chairman.
“All proposed data centre developments must first obtain approval from this committee before applying to the local authorities for planning permission.
“The committee also evaluates the power usage effectiveness (PUE) to ensure that electricity is used efficiently and in compliance with the prescribed regulations,” he said.
According to Lee, the state government has taken note of the BMI report and plans to increase electricity generation capacity are being implemented comprehensively at both state and federal levels.
He said the Energy Commission, under the Ministry of Energy Transition and Water Transformation, has called for new tenders to increase power capacity by 8 GW across Peninsular Malaysia, with a significant portion of the additional capacity expected to be channelled to Johor.
“At the state level, Johor is intensifying large-scale solar energy projects to diversify electricity supply sources in the Kota Tinggi, Mersing and Segamat areas.
“Overall, these projects are expected to raise Johor’s solar generation capacity by about an additional 5 GW by 2030 or 2031 for channeling to data centres and large-scale industries,” he said.
The initiative comprises solar projects totalling 4 GW in Kota Tinggi and Mersing, which are expected to start in phases from mid-2029, as well as a 1 GW solar project in Segamat.
Lee also welcomed the Federal Government’s policy allowing operators of large-scale data centres to explore alternative solutions, including off-grid solutions to generate their own electricity, subject to the stipulated regulations.
“These are long-term plans because developing new electricity generation capacity takes a long time. Efforts to increase electricity generation through solar projects, off-grid solutions and new tenders issued by the Energy Commission are being actively pursued by both the Johor government and the Federal Government.
“We are confident that this careful planning will ensure an adequate electricity supply to support the growth of the data centre industry and other industrial developments in Johor,” he added.