The government is withholding decisions on 24 new data centre applications while evaluating whether national power and water supplies can support existing approved projects.
KUALA LUMPUR: The government has yet to decide on 24 new data centre applications as it assesses whether electricity supplies can meet the needs of 117 projects already approved, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said.
He said the assessment would also consider the potential to provide additional power through renewable energy, energy storage systems and emerging technologies.
“We have received 24 new data centre applications, but have yet to make any decision,” he said when winding up debate on the Supply Bill 2027 for his ministry in the Dewan Rakyat today.
He was responding to Hassan Abdul Karim (PH-Pasir Gudang), who asked whether there was a conflict of interest involving a water supply company in Johor that also has substantial interests in data centre investments in the state.
Johari said the government would seek input from Tenaga Nasional Bhd (TNB) on electricity supply adequacy and reserve margins before considering approvals for additional data centres.
“This is important to ensure that the energy needs of other industries are not affected by the influx of data centre investments.
“If existing supplies are insufficient, the government will examine off-grid power generation options, including solar energy combined with battery storage systems,” he said.
He added that state governments must confirm water availability before data centre projects could be considered for approval.
“If a state does not have sufficient water, we cannot approve even if land is available.
“The government must ensure that utility supplies are in place before investors commit substantial capital to developing data centres,” he said.
