Johor plans 5GW solar expansion to supply data centres
Solar developments in Kota Tinggi and Mersing, totalling 4GW, are expected to start in phases from mid-2029, with another 1GW project in Segamat.
Johor is seeking to expand its solar generation capacity by about 5GW by 2030 or 2031 to serve data centres and large-scale industries, said State Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han.
Lee said the state was developing large-scale solar projects across Kota Tinggi, Mersing and Segamat to diversify its power sources. Projects in Kota Tinggi and Mersing total 4GW and are expected to start progressively from mid-2029. The Segamat development accounts for 1GW.
The state has granted approval for 65 data centre projects on a land-plot basis, according to Lee. He said 21 centres were already operating, with expected electricity consumption of nearly 1.1 GW. Those being built or planned would require a further 4GW to 5GW.
BMI, a Fitch Solutions company, projects annual electricity demand from Johor’s data centres at about 30 terawatt-hours (TWh) by 2031. Its estimate would put their share of Peninsular Malaysia’s electricity supply at 18%.
Lee said developers must obtain approval from the Johor State Data Centre Development Coordination Committee (JPPPDNJ) before submitting planning applications to local authorities. Its assessments include power usage effectiveness (PUE), aimed at ensuring efficient electricity consumption and regulatory compliance without disrupting public utility supply.
Separately, Lee said the Energy Commission had sought tenders for 8GW of additional power capacity across Peninsular Malaysia, a significant portion of which is expected to go to Johor. He also welcomed federal policy allowing large-scale data centre operators to explore generating electricity themselves, including through off-grid solutions, subject to regulations.
