BMI: Johor data centres could use over 90% of peninsula's added power by 2031

Research firm BMI, a Fitch Solutions company, says Johor's data centre industry could use more than 90% of the extra electricity generated in Peninsular Malaysia over the next five years. According to The Edge Malaysia, BMI estimates the state's data centres will need about 30 TWh a year by 2031, or 18% of the peninsula's total supply, up from 6% in 2026.

Key points

• Johor has about 825MW of operational data centre capacity, with another 3.9GW expected within three to five years on demand for cloud computing and AI.
• BMI says grid connection, not generation, is the bigger challenge, and expects delays for some projects without secured electricity connections.
• Tenaga Nasional Bhd plans to invest RM43 billion in grid upgrades, but BMI notes major infrastructure projects typically take five to 10 years.
• Under BMI's base case, generation should meet demand, though higher-than-expected data centre activity could strain supply.

Why it matters for Malaysia

If one state's data centres take most of the new supply, there is less room for other users of power, and the timing of grid work could decide which AI projects are built on schedule.

Questions answered

How much of Peninsular Malaysia's new power could Johor data centres use?

BMI says Johor's data centres could use more than 90% of the extra electricity generated in Peninsular Malaysia over the next five years, reaching about 30 TWh a year by 2031.

Will Johor data centre projects be delayed by power constraints?

BMI expects some planned data centres to be delayed, especially those that have not secured electricity connections. It says grid infrastructure takes considerably longer to develop than data centres.