Johor’s data centre boom faces power supply crunch
Johor, Malaysia, is facing a significant electricity supply crunch that threatens to derail its booming data centre industry. Research firm BMI warns that grid connection challenges and high power demand from AI and cloud computing could delay major infrastructure projects.
Why it matters
The energy demands of the AI and data center boom are creating infrastructure bottlenecks that could impact regional economic development.
Johor faces the most severe electricity supply constraints among major Asia-Pacific data centre hubs, said BMI. (EPA Images pic)
PETALING JAYA: Johor’s data centre boom may be derailed by a looming electricity supply crunch, leading to delays in rolling out such projects in the southern state, a US research firm said.
BMI, a Fitch Solutions company, said Johor is expected to face the “most severe electricity supply constraints” among major Asia-Pacific data centre hubs.
It warned the rapid development of hyperscale data centres in Johor, Sydney, Melbourne and Batam could significantly increase electricity consumption over the next five years, potentially limiting power availability for other industries and households.
“Access to electricity grid connections could become an even greater obstacle than overall power generation availability, potentially delaying a significant number of planned projects,” it said in a report.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in