JOHOR BARU: The construction of new data centres in the country, including more than 50 in Johor, will not disrupt domestic electricity and water supplies nor lead to tariff increases.
Deputy Energy Transition and Natural Resources Minister Akmal Nasrullah Mohd Nasir said electricity tariffs are only adjusted based on fluctuations in the cost of raw materials such as coal, and not due to industrial developments like data centres.
He said electricity and water tariff adjustments are primarily tied to rising raw material costs.
"Fuel costs typically drive tariff changes. That's why the ministry takes a holistic approach to ensure the existing system delivers reliable and sustainable supply," he said.
"Consumers should not worry about data centre projects impacting their utility bills or supplies. These facilities require substantial, consistent energy and water, but the government ensures that new commitments will not compromise existing supply needs," he said after attending the Malaysia Energy Literacy Programme at Universiti Teknologi Malaysia here today.
Akmal said data centre operators are encouraged to adopt renewable energy sources and improve energy efficiency to minimise their environmental footprint.
He also acknowledged the challenges involved in transitioning from traditional grids to smart grids to boost capacity, which incurs significant costs.
Tariff reviews are conducted periodically to address these dynamics.