Accra:First paragraph of the news story.
According to BERNAMA News Agency, data centre investors will be required to cover the costs of upgrading electricity transmission lines to meet their power needs. Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani emphasized that as the number of data centres increases, the demand on existing electricity infrastructure could necessitate these upgrades.
Johari explained that while there is currently sufficient power capacity, the transmission lines might face challenges if more data centres are built. Tenaga Nasional Bhd (TNB) will inform data centres that request 1,000 megawatts of power that they must invest in transmission line upgrades. This strategy aims to prevent disruptions to ongoing economic activities.
In a session at the Dewan Rakyat, Johari responded to concerns from Rodziah Ismail (PH-Ampang) about ensuring additional infrastructure costs do not burden other parties. He mentioned that data centre operators would be charged for their allocated electricity capacity, even if not fully utilized, and operations would cease if payments are not made.
The federal government, along with the Energy Commission, MITI, and the Finance Ministry, will monitor data centres' energy needs to protect existing electricity supplies for industries and consumers. Johari also advised state governments to carefully manage water supplies for data centres, mandating technology for water recycling.
Regarding the impact of RM385.7 billion in approved data centre investments since 2021, Johari noted that the Data Centre Task Force (DCTF) has set a 30% minimum local content requirement for each data centre. This initiative is expected to integrate local companies into the supply chain, create jobs, enhance competitiveness, and reduce reliance on imports.
He also highlighted that data centres' contribution to the GDP is projected to rise from RM900 million in 2021 to RM14.1 billion in 2025, driven by increased construction and operational activities and higher utility spending.