Johor data centres hit ‘time to power’ bottleneck
Approvals and grid delivery delays – not generation capacity – are determining which data centre projects move ahead on schedule
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[KUALA LUMPUR] Johor’s bottleneck is no longer power generation but grid delivery, with connection timelines now determining which data centre projects move on and which fall behind, said industry watchers.
The consequences of that shift are already visible. Johor rejected up to 30 per cent of new data-centre applications in 2024, based on industry guidance published this month.
The report by Area Market Intelligence cited misaligned utility timelines, lack of clarity on the responsibility for substation infrastructure, and planning issues that were identified late in the day for the delays and rejections.
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