Johor Data Centres Could Claim 90% of New Peninsula Power

Quick Answer: BMI says Johor data centres could consume more than 90% of the additional electricity generated in Peninsular Malaysia over the next five years. Their share of peninsula supply is estimated to rise from 6% in 2026 to 18% by 2031, or about 30 terawatt-hours a year. For shareholders of YTL Power International Bhd (KL:YTLPOWR) and Tenaga Nasional Bhd (KL:TENAGA), the grid build-out is the number to watch.

The Johor data centres boom is now a power story as much as a tech story. BMI, a Fitch Solutions company, warns the state’s demand for cloud computing and artificial intelligence (AI) is outpacing the grid that serves it.

How Much Power Will Johor Data Centres Need by 2031?

Johor data centres could consume over 90% of peninsula's additional power generation by 2031 — BMI — BMI sees Johor data centres taking over 90% of new peninsula electricity generation

BMI estimates Johor’s data centres will need about 30 terawatt-hours (TWh) of electricity annually by 2031.

That equals 18% of Peninsular Malaysia’s total electricity supply, up from 6% in 2026.

Operational capacity today: about 825 megawatts (MW)
Expected additions: 3.9 gigawatts (GW) over the next three to five years
Peninsular grid operating at an estimated 30% of its total capacity

Johor Data Centres Could Claim 90% of New Peninsula Power — Photo: TheEdge

Why Is Grid Capacity, Not Generation, the Real Constraint?

BMI warns Johor could face the tightest electricity supply constraints among the data centre hubs it researched. The list includes Sydney and Melbourne in Australia, and Batam in Indonesia.

BMI says the bigger problem is connection, not output. ‘Grid infrastructure takes considerably longer to develop than data centres, meaning headline generation capacity can overstate how much power is actually accessible to new projects,’ the research firm said.

Data centre developments are concentrated in Sedenak and Nusajaya, where local electricity infrastructure is becoming strained. BMI expects some planned projects to face delays, particularly those yet to secure electricity connections.

Which Projects Are Behind Johor’s 3.9GW Pipeline?

YTLPOWR is developing a 1.2GW data centre campus. Its first 300MW is expected to be operational by the first quarter of 2027.

A separate 300MW facility in Sedenak is owned by Vantage Data Centers, which is backed by US alternative asset manager DigitalBridge Group Inc.

What Does This Mean for KL:YTLPOWR and KL:TENAGA Shareholders?

For YTLPOWR, the 1.2GW campus is the main exposure to track. Investors may want to check whether its grid connection is secured, since BMI flags unconnected projects as the most exposed to delay.

TENAGA plans to invest RM43 billion in grid upgrades. BMI notes that major infrastructure projects typically take five to 10 years to complete, which could delay new data centre developments.

BMI also expects Malaysia to increase gas-fired generation. Some scheduled power plant closures could be postponed to keep supply sufficient.

Will Peninsular Power Supply Keep Up With Data Centre Demand?

Under BMI’s base-case projections, electricity generation is expected to meet demand. Higher-than-expected data centre activity, however, could strain supply.

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Key Takeaways

BMI estimates Johor data centres could consume over 90% of Peninsular Malaysia’s additional generation over five years.
Their share of peninsula supply rises from 6% in 2026 to 18% by 2031.
Grid connection, not generation, is the bigger constraint, according to BMI.
Watch YTLPOWR’s first 300MW (first quarter of 2027) and TENAGA’s RM43 billion grid programme.

Frequently Asked Questions

How much electricity will Johor data centres use by 2031?

BMI estimates Johor data centres will need about 30 terawatt-hours a year by 2031. That is 18% of Peninsular Malaysia’s total electricity supply, up from 6% in 2026.

What is YTL Power’s data centre plan in Johor?

YTL Power International Bhd (KL:YTLPOWR) is developing a 1.2GW data centre campus. Its first 300MW is expected to be operational by the first quarter of 2027.

How much is Tenaga Nasional investing in grid upgrades?

Tenaga Nasional Bhd (KL:TENAGA) plans to invest RM43 billion in grid upgrades. BMI notes major infrastructure projects typically take five to 10 years to complete.

Why could Johor data centre projects face power delays?

BMI expects delays mainly for projects that have not yet secured electricity connections. It says grid infrastructure takes considerably longer to develop than data centres.

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