Johor bahru: The Johor state government will never approve any project, including data centre developments, if it brings hardship to the people, said Menteri Besar Datuk Onn Hafiz Ghazi. He emphasized that as a responsible government, it will not gamble with the people's welfare merely to attract major investments, and various factors will be taken into account before approving any development project. "We will never allow the people to suffer by making irresponsible decisions," he said in an interview with a Bernama team led by editor-in-chief Arul Rajoo Durar Raj at Saujana, the Menteri Besar's official residence, here recently.
According to BERNAMA News Agency, Onn Hafiz stated that he is aware of the ongoing debates regarding water and electricity supply adequacy in Johor, particularly after the state became a focal point for foreign companies looking to develop data centres. This focus has raised questions about the surge in utility consumption required to operate such facilities. However, he assured that both state and federal governments have comprehensively reviewed Johor's water supply planning, covering short-, medium-, and long-term projects to ensure stability.
Onn Hafiz, also the Machap state assemblyman, revealed that 38 projects worth RM15.3 billion will be implemented to bolster water supply security while supporting the needs of the people and the state's rapidly growing industrial and investment sectors. Regarding data centre construction, he mentioned that the Johor State Data Centre Development Coordinating Committee (JPPPDNJ) will assess applications, focusing on the water and electricity requirements of the companies involved. The committee will approve only Tier 3 and Tier 4 data centre developments that use air-cooling technology to minimize water usage.
Addressing concerns about water supply disruptions allegedly linked to data centre developments, Onn Hafiz clarified that no data centres are operating in the areas affected by recent disruptions, such as Simpang Renggam and Benut. He urged the Bangsa Johor community to verify information before drawing conclusions. Onn Hafiz expressed concern that misinformation could deter investors and emphasized the importance of maintaining investor confidence.
Johor has become Malaysia's leading destination for data centre investments, with 42 projects worth RM164.45 billion approved as of the second quarter of 2025. This development has contributed approximately 7.8 percent to Malaysia's operational IT capacity and created around 6,000 high-skilled jobs. By 2030, about 60 percent of the nation's data centre capacity is expected to be concentrated in Johor. Last year, the state government halted new approvals for Tier 1 and Tier 2 data centre developments, reinforcing its commitment to responsible growth and resource management.