> ## Content Index > Fetch the complete content index at: https://www.sotkn.com/llms.txt > Use this file to discover other available public pages before exploring further. # One Year to Connect, Five to Ten to Build: Who Gets Paid While Johor's Data Centres Queue at the Substation - URL: https://www.sotkn.com/markets/malaysia/malaysia-johor-data-centre-grid-connection-october-2026/ - Published: 2026-10-28T09:00:46.000Z - Updated: 2026-10-28T09:00:46.000Z - Description: Johor's data centres could need 30 TWh a year by 2031, more than 90% of the new power Peninsular Malaysia is set to add, BMI says. TNB promises approved halls a grid hook-up within a year. Cable and substation builders are paid now. The local connection is the stuck step. - Author: Sean - Tags: #market-malaysia, Markets *Two clocks met in Johor this week. On 23 October BMI said the state’s data centres could need more than 90% of all the new electricity Peninsular Malaysia is expected to add by 2031, and that the grid works to carry it usually take five to 10 years. Four days later, Tenaga Nasional promised that an approved data centre will be connected within one year. Both can be true only if the short stretch between the big grid and each hall is ready in time. The stuck step is the local connection: the substation and the cable at the gate.* **MALAYSIA PULSE** · AI DATA CENTERS · Data as at 28 Oct 2026 · Next update: NEWGEN26 awards, by year-end **Affects:** [AI Data Centers](https://www.sotkn.com/stack/ai-data-centers/) · [Hyperscalers](https://www.sotkn.com/stack/hyperscalers/) — Markets: [Malaysia](https://www.sotkn.com/markets/malaysia/) · [Singapore](https://www.sotkn.com/markets/singapore/) · [Australia](https://www.sotkn.com/markets/australia/) · [Taiwan](https://www.sotkn.com/markets/taiwan/) **In short:** BMI, part of Fitch Solutions, said on 23 October that new data centre capacity in Johor could need about 30 TWh of power a year by 2031: about 18% of Peninsular Malaysia’s supply, up from 6% this year, and more than 90% of the net new generation it expects. Johor has about 825 MW of data centres running and 3.9 GW planned. Overall the grid is only about 30% used, but demand is bunched around Sedenak and Nusajaya, where local substations are filling. On 27 October TNB pledged to connect approved data centres within a year. Cable and substation builders are paid now. Hall owners are paid when power flows. Stuck step: the local connection. Map of who gets paid — not a buy list. Education only, not advice to buy or sell any security. Figures are as published by BMI, TNB and the companies named, or as reported by Bernama, The Star, Business Today, The Edge Malaysia, The Business Times, The Japan Times and Fortune, unless another source is named. Our own sums are labelled. ### The numbers that matter this week Johor data centre power need, 2031 \~30 TWh BMI base case · 65% utilisation Forecast Share of new Peninsular power \>90% 30 of 31.4 TWh net new generation Tight Johor capacity live vs planned 825 MW → +3.9 GW Planned over three to five years Building TNB grid plan, 2025–27 RM43bn RM15bn of it flagged in Budget 2027 Funded TNB connection pledge 1 year From committee approval · 27 Oct Promise Typical major grid project 5–10 years BMI · local substations in Sedenak and Nusajaya filling Stuck step Figures from BMI (report dated 22 Oct 2026, as reported by Bernama and Business Today on 23 Oct), TNB (Budget 2027 statement, 10 Oct; SIEW panel, 27 Oct, via Bernama). Status chips are Second Order’s read. **On this page:** [Why it matters](#why-it-matters) · [What BMI said](#what-bmi-said) · [Why use rates decide it](#utilisation) · [What is being built](#the-pipeline) · [TNB’s one-year pledge](#the-pledge) · [The cable at the gate](#the-last-mile) · [Where the power comes from](#generation) · [New money, same wires](#new-money) · [Our math](#our-math) · [Who gets paid](#money-goes) · [What is stuck?](#still-stuck) · [Dates next](#dates) · [What would change this](#change-view) · [FAQ](#faq) ## Why does Johor’s grid queue matter to who gets paid? Because a data centre without power is just an expensive building. Johor has become South-east Asia’s busiest place to build AI and cloud halls, next door to land-short Singapore ([where AI data centers are located](https://www.sotkn.com/explained/where-are-ai-data-centers-located/)). Over the past three weeks we have covered how much of the power already booked is actually used ([the power-use Pulse](https://www.sotkn.com/markets/malaysia/malaysia-data-centre-power-use-october-2026/)), how DayOne borrowed to build ([the DayOne Pulse](https://www.sotkn.com/markets/malaysia/malaysia-dayone-financing-substation-october-2026/)), the rule that data centres pay for power they book but do not use ([the unused-power Pulse](https://www.sotkn.com/markets/malaysia/malaysia-data-centre-unused-power-charge-october-2026/)), and the new charge for green power sent through the grid ([the green-power Pulse](https://www.sotkn.com/markets/malaysia/malaysia-data-centre-green-power-grid-charge-october-2026/)). This week added something different: an outside forecast of how much of Malaysia’s new power Johor’s halls will take, and a clear statement from the utility about how fast it will hook them up. Put side by side, they point to one narrow place in the chain. Not the power stations. Not the money. The short run of high-voltage cable and the substation that link a campus to the grid. This Pulse follows that chain in order: who is paid to build the link, who is paid to supply the power behind it, and who waits until the switch is thrown. 1 · The builders **Who:** Cable, ducting and substation contractors listed on Bursa **Paid:** Paid on progress · jobs run to 2027–28 Paid 2 · The grid owner **Who:** TNB spends RM43bn on the network and recovers it through regulated returns **Paid:** Paid as assets enter service Paid 3 · The local connection **Who:** Substation bays and cable at Sedenak and Nusajaya **Paid:** One year promised · big works take 5–10 years Stuck step 4 · The hall owner **Who:** YTL Power, Vantage, DayOne and others earn when power flows **Paid:** Paid on energisation Waiting ## What did BMI say on 23 October? BMI is the country-risk and industry research arm of Fitch Solutions. In a report dated 22 October and widely reported the next day, it looked at four data centre hubs in the region: Johor, Sydney, Melbourne and Batam. Johor came out tightest. In BMI’s base case, new data centre capacity in Johor would need about 30 TWh of electricity a year by 2031\. A terawatt-hour is a billion kilowatt-hours; 30 of them is a lot of power. BMI put that at about 18% of Peninsular Malaysia’s total electricity supply in 2031 (Business Today’s version of the report gives 18.5%), up from about 6% in 2026\. In plain terms, Johor’s data centres would go from about one unit in every 17 the Peninsula uses to about one in every five or six. The sharper number is the share of what is new. BMI expects net new generation on the Peninsula of about 31.4 TWh over the period. Johor’s data centres alone would need 30 TWh of it. BMI said that is more than 90% of the net addition; on its own figures it is about 96% (our arithmetic). That leaves very little of the growth in supply for homes, factories, electric cars or anything else. BMI gave a simple reason the Peninsula is so tight: its grid is not linked to Sarawak, where most of Malaysia’s new hydropower will be built. So most of Johor’s extra demand will be met with gas. It also said some planned closures of old power plants are likely to be delayed to keep enough supply on hand. Then came the part that matters most for this Pulse. BMI said the bigger problem is not making enough electricity but connecting to it. Overall, Johor’s grid is only about 30% used, based on industry estimates. But data centre demand is packed into a few spots, especially the Sedenak and Nusajaya Tech Parks, where local substations and connections are under strain. In BMI’s words, grid infrastructure takes considerably longer to build than data centres, so headline generation can overstate how much power new projects can actually reach. ## Why do use rates, not efficiency, decide the number? ![Chart of BMI's Johor data centre electricity need in 2031 under three utilisation cases, 20.8, 30 and 36.9 TWh, against 31.4 TWh of net new generation on the Peninsula](https://storage.ghost.io/c/cd/10/cd10e222-131f-4ba4-b4a9-ca4214e8c12d/content/images/2026/10/malaysia-johor-data-centre-grid-connection-october-2026-print.png) At high use, Johor's data centres need more than the Peninsula adds. · Education only. A data centre’s power bill depends on two things: how hard its servers run, and how much extra power goes on cooling and other overheads. The second is measured by power usage effectiveness, or PUE ([PUE explained](https://www.sotkn.com/explained/pue-explained/)). BMI assumed a PUE of 1.35 for Johor, meaning that for every 1 MW of computing about 0.35 MW more goes on cooling and support, a reflection of the tropical heat. BMI’s point is that how full the halls run matters far more than small gains in cooling. At 45% utilisation, Johor’s extra need by 2031 would be about 20.8 TWh. At 65%, its base case, about 30 TWh. At 80%, about 36.9 TWh. The last figure is about 5.5 TWh more than all the net new generation BMI expects on the Peninsula (our arithmetic). AI training halls tend to run harder than ordinary cloud halls, BMI noted, so a shift towards AI pushes the number up. We checked what sits behind those figures. Turn 30 TWh a year into an average load and you get about 3.4 GW running all day, every day. Divide by BMI’s 1.35 PUE and its 65% use rate, and you land at about 3.9 GW of computing capacity, which is exactly the planned Johor pipeline. The 45% and 80% cases come back to the same 3.9 GW (all our arithmetic). So BMI’s forecast is not a guess about new projects. It is the pipeline already announced, run at different speeds. That matters for reading this story. Our 10 October Pulse showed how much of the power booked by Malaysia’s data centres was not yet being drawn ([plugged in vs used](https://www.sotkn.com/markets/malaysia/malaysia-data-centre-power-use-october-2026/)). BMI’s scenarios are the forward version of that gap. If the halls fill slowly, the Peninsula copes. If they fill fast with AI work, it does not. ## What is actually being built in Johor? ![Chart of Johor data centre capacity: 825 MW live today against 3.9 GW planned over three to five years, with TNB's 5.7 GW completed and 8.4 GW signed power agreements nationally](https://storage.ghost.io/c/cd/10/cd10e222-131f-4ba4-b4a9-ca4214e8c12d/content/images/2026/10/malaysia-johor-data-centre-grid-connection-october-2026-shift.png) What is planned is several times what is live. · Education only. BMI counts about 825 MW of data centre capacity running in Johor today, with another 3.9 GW expected over the next three to five years. The planned amount is about 4.7 times what is live (our arithmetic). Two projects stand out in BMI’s list. YTL Power International is building a 1.2 GW campus in Johor, with its first 300 MW expected to be running by the first quarter of 2027\. And a 300 MW campus in Sedenak, now owned by Vantage Data Centers, has raised more than US$900 million of financing. Both are large halls rented to a few very big customers ([hyperscale vs colocation](https://www.sotkn.com/explained/hyperscale-vs-colocation-data-center/)). Other Johor borrowers have also found money this month ([Princeton Digital’s Johor loan](https://www.sotkn.com/wire/princeton-digital-1-2b-loan-198-8-mw-johor-data-center-wire/)). On the utility’s side, the paperwork is already ahead of the wires. RHB Investment Bank wrote on 19 October that TNB has signed energy supply agreements with data centres covering 8.4 GW, with 5.7 GW of that capacity completed. That leaves about 2.7 GW signed but not yet marked complete (our arithmetic). TNB signed five new agreements for 856 MW in the first half of 2026 and is aiming for 10 this year, for up to 1.5 GW. Officials have put the total signed at up to 8.77 GW of peak demand, Bloomberg reported on 27 October, almost a third of Malaysia’s installed capacity in 2025. Rules are also tighter than a year ago. BMI noted that in February 2026 Malaysia restricted approvals for new non-AI data centres for almost two years, and that operators must show they have access to power and water before they connect ([AI data center water usage](https://www.sotkn.com/explained/ai-data-center-water-usage/)). The government has also said investors carry the cost of transmission upgrades, which we covered on 17 October and do not repeat here. ## What did TNB promise at Singapore Energy Week? On 27 October, at a Singapore International Energy Week panel on the ASEAN Power Grid, TNB’s chief distribution network officer Ahmad Sazree Abd Aziz was blunt about the pressure. “For Malaysia, we do actually have pressure in terms of the data centre,” he said. “So, once it’s been approved by the ministry-chaired committee, we pledge to get data centres connected to the grid in one year’s time.” He framed it around three practical steps: forecasting demand, planning network capacity, and building targeted infrastructure. He said the real benefit of a regional grid comes from how strong the domestic network is, particularly transmission and distribution, and that TNB is modernising and digitising its distribution network so more renewable power can connect at that level. TNB already runs a fast track it calls the Green Lane Pathway, which it says streamlines and speeds up building the supply infrastructure for data centre projects. In its Budget 2027 statement on 10 October it welcomed a RM15 billion allocation for strengthening the national grid, which it said forms part of its RM43 billion plan to strengthen and modernise the grid from 2025 to 2027\. RM15 billion is about 35% of that plan (our arithmetic). Read carefully, the pledge and the BMI warning are about different pieces of wire. A one-year connection is about the last link: a new feeder, a bay at a substation, the cable into the campus. BMI’s five-to-10-year figure is about the major works behind that link: new main substations, new high-voltage lines, reinforcement of the backbone. If the backbone near Sedenak and Nusajaya has room, the one-year promise can hold. Where it does not, the last link has nothing to plug into. Singapore readers will recognise the setting. The same week, Singapore set out its own plan for power demand, including more links from Malaysia ([Singapore’s power plan](https://www.sotkn.com/markets/singapore/singapore-power-plan-data-centres-green-fuel-october-2026/)). Any cross-border flow also runs through the same Johor network that the data centres are queuing for. ## Who is building the cable at the gate? The clearest view of the stuck step comes from small Bursa filings. On 19 October Jati Tinggi Group said a wholly owned unit had accepted a RM30.1 million letter of award as main contractor for power works at a data centre in Kulai, Johor. The scope is design and build of two circuits of 275 kV underground ducting, plus 11 kV temporary power cable works. The contract runs from 16 October 2026 to 25 July 2027, about 282 days (our arithmetic). That job is worth reading line by line. 275 kV is a transmission voltage, the level used to bring large blocks of power to a big site. Two circuits means a spare path, so one cable can fail without the hall going dark. And the “11 kV temporary power” tells you the site needs power for construction before the permanent supply is ready. Even the builders are waiting on the connection. A bigger example sits further along the same chain. In August, CBH Engineering said its unit had won a RM246 million contract to deliver and install high-voltage transformers and other equipment for a 275 kV substation at a Johor data centre project, for a client it could not name. The job began on 3 July 2026 and is due to finish on 15 September 2028, about 26 months (our arithmetic). A large substation is a two-year project even when the money and the order are already in place. Earlier this month MN Holdings and Kinergy also won substation and cable work for data centres, which we covered with DayOne’s financing ([the DayOne Pulse](https://www.sotkn.com/markets/malaysia/malaysia-dayone-financing-substation-october-2026/)). Put together, the filings show where Johor’s data centre money is flowing right now: into 275 kV cable, ducts and transformers, the pieces that sit between the national grid and a campus. Those firms are paid while the work is done, whether or not the hall behind them ever runs at 65%. There is a tension worth naming. TNB’s one-year pledge runs from committee approval. The CBH job runs 26 months. The two may not conflict: a campus can be connected first through an existing substation with a smaller first block of power, while its own bigger substation is built. But it does mean that “connected” and “fully powered” can be two different dates, a year or more apart. ## Where will the power behind the connection come from? Mostly gas. BMI forecasts Malaysia’s thermal capacity will rise by a net 3.0 GW between 2029 and 2031, from 33.3 GW to 36.3 GW, with gas-fired output up 13.6 TWh to 106.7 TWh. That is well above the net increase of about 0.9 GW implied by official plans, under which 7.9 GW of new gas plants replace 6.9 GW of coal and gas being retired. The difference of about 2 GW is BMI’s expectation that old plants run longer than planned (our arithmetic). The next new plants come through the Energy Commission’s NEWGEN26 tender. RHB said four bids totalling 3.6 GW have been received and expects winners by year-end. It thinks players that have already reserved gas turbines, naming TNB and YTL Power, are best placed, and that turbines could also be used for captive plants that feed data centres directly. Turbines themselves are booked years ahead around the world ([if gas turbines stay booked into 2030](https://www.sotkn.com/analysis/if-gas-turbines-stay-booked-into-2030-where-cash-sticks/)). Green power is the other route. Data centres want renewable supply to meet customer targets, and Malaysia’s scheme for sending green power through the grid now has a 2028 deadline that shapes who builds what ([the green-power Pulse](https://www.sotkn.com/markets/malaysia/malaysia-data-centre-green-power-grid-charge-october-2026/)). But solar farms need their own grid connections, so they join the same substation queue rather than skipping it. In other words, generation is not the binding step yet. BMI’s base case has enough new supply, just barely. What turns that supply into power at a hall is the network, and the network is where the five-to-10-year clock lives ([how hyperscalers buy power](https://www.sotkn.com/stack/hyperscalers/how-do-hyperscalers-buy-power/)). ## What does new money change, and what does it not? Investment keeps arriving. Prime Minister Anwar Ibrahim said in a speech on 24 October that SoftBank’s Masayoshi Son had chosen Kuching in Sarawak and Peninsular Malaysia for about US$50 billion of investments in AI, new technology and data centres. Nikkei Asia reported that SoftBank would fund only part of it, with project finance and partners covering the rest. The Malaysian Investment Development Authority has recorded RM385.7 billion, about US$94 billion, of data centre related investment from 2021 to mid-2026; US$50 billion would add more than half again (our arithmetic). Note the two places named. Sarawak has the hydropower; the Peninsula has the customers and the cables to Singapore. Because the two grids are not linked, BMI’s point applies: power built in Sarawak does not ease Johor’s substations. Where SoftBank puts its first halls will say a lot about which constraint it sees as harder ([sovereign AI explained](https://www.sotkn.com/explained/sovereign-ai-explained/)). Landowners are lining up too. SD Guthrie, the palm oil group and Malaysia’s biggest landowner, told Bloomberg it has set aside about 10% of its landbank for industrial development and renewable assets, and expects industrial development to make up a third of its revenue by the end of the decade. Its chief executive called Malaysia the most stable country in the region for building data centres, but warned that energy constraints must be dealt with for Johor to reach its potential. Money and land are not short. That is the same lesson we drew from Australia this week, where 32 lenders backed one Sydney campus while the binding date was power-on ([the SYD3 Pulse](https://www.sotkn.com/markets/australia/australia-airtrunk-syd3-green-loan-power-on-october-2026/)), and from NEXTDC’s Melbourne delay, where the last street of cable held up a finished hall ([the M3 Pulse](https://www.sotkn.com/markets/australia/australia-nextdc-melbourne-power-delay-october-2026/)). Taiwan has its own version ([Taipower and AI data centres](https://www.sotkn.com/markets/taiwan/taiwan-taipower-ai-data-centre-grid-october-2026/)). ## Our math: what do the numbers say? - Share of new supply: 30 TWh of 31.4 TWh net new Peninsular generation is about 96%; BMI rounds it to “more than 90%” (our arithmetic). - High-use gap: at 80% utilisation, 36.9 TWh is about 5.5 TWh more than the 31.4 TWh of new supply (our arithmetic). - What sits behind 30 TWh: 30 TWh over 8,760 hours is about 3.4 GW of average load; divided by PUE 1.35 and 65% use, about 3.9 GW of IT capacity, the planned pipeline. The 45% and 80% cases also return 3.9 GW (our arithmetic). - Pipeline vs live: 3.9 GW planned over 825 MW live is about 4.7 times (our arithmetic). - Signed vs completed: TNB’s 8.4 GW of agreements less 5.7 GW completed leaves about 2.7 GW still to finish (our arithmetic on RHB’s figures). - Grid budget: RM15 billion is about 35% of TNB’s RM43 billion 2025–27 grid plan; RM43 billion over three years is about RM14 billion a year (our arithmetic). - The clocks: Jati Tinggi’s cable job runs about 282 days; CBH’s substation job about 26 months; TNB pledges 12 months from approval; BMI says major grid projects take five to 10 years (our arithmetic on published dates). - Old plants: BMI’s 3.0 GW net thermal rise less the plan’s 0.9 GW is about 2 GW of capacity it expects to stay open longer (our arithmetic). - New money: US$50 billion against MIDA’s US$94 billion recorded since 2021 is about 53% more (our arithmetic). What this tells you: Johor’s data centre pipeline is roughly the size BMI says the Peninsula can just about supply, if the halls run at a middling pace. The fuel and the money are being lined up. The thing with the longest clock is the network near the campuses, and the thing with the shortest promise is the connection to it. ## Who gets paid first? ![Infographic: who gets paid while Johor's data centres queue at the substation, from cable and substation builders to gear makers, TNB and gas plants, with the local connection as the stuck step](https://storage.ghost.io/c/cd/10/cd10e222-131f-4ba4-b4a9-ca4214e8c12d/content/images/2026/10/malaysia-johor-data-centre-grid-connection-october-2026-infographic.png) Who gets paid / stuck step in Johor's grid queue. · Education only. First, the cable and substation builders — on progress. Contracts like Jati Tinggi’s RM30.1 million cable job and CBH’s RM246 million substation job are paid as work is done, from now until 2027 and 2028\. They are paid whether a hall fills at 45% or 80%. Second, the equipment makers — on delivery. Transformers, switchgear and high-voltage cable are ordered long before a hall is finished. Whoever makes them is paid when the gear lands, not when the tenant starts paying. Third, TNB — as assets go into service. TNB’s network is regulated: it spends on the grid and earns an allowed return on what it builds. Its RM43 billion plan is the largest single pot of money in this chain, and developers now pay for the upgrades their projects need. TNB also sells the power once halls run. Fourth, the power plant owners — on award and then on output. The NEWGEN26 winners, expected by year-end, and any owners of older plants kept open longer, are paid for capacity and energy. BMI expects gas to carry most of the new load. Last, the hall owners — on energisation. YTL Power, Vantage, DayOne and the rest earn from tenants only once power reaches the hall and the tenant starts paying. Until then their borrowing costs run ([data center financing explained](https://www.sotkn.com/explained/data-center-financing-explained/); [what an AI data center costs](https://www.sotkn.com/explained/how-much-does-it-cost-to-build-an-ai-data-center/)). Halls without a confirmed connection or customer carry the most risk ([a Malaysia hall with no customer yet](https://www.sotkn.com/wire/bitdeer-ai-67-mw-malaysia-data-center-no-customer-wire/)). One-line rule: in Johor’s data centre build, cable, substation and gear makers are paid as the link is built; TNB is paid as it enters service; hall owners are paid only when power flows. The stuck step is the local connection. ## So what is the stuck step? The local connection: the substation bay and the high-voltage cable that link a campus in Sedenak or Nusajaya to the grid. Not total generation, which BMI says is enough in its base case. Not money, which keeps arriving. Four things make it stick: - **Demand is bunched.** Johor’s grid is about 30% used overall, but the data centres sit in a few parks, so a handful of substations carry most of the load. - **The clocks do not match.** BMI says data centres go up considerably faster than grid works. A 275 kV substation job runs about two years, and major grid projects five to 10. - **“Connected” is not “fully powered”.** TNB pledges a connection within a year of approval. A campus may start on a smaller first block and wait longer for its full supply. - **The use rate is unknown.** BMI’s range runs from 20.8 to 36.9 TWh depending only on how hard the halls run. Planners must size the local network for a number no one knows yet. This is the kind of bind our [stuck-step Analysis](https://www.sotkn.com/analysis/where-does-the-stuck-step-move/) describes: once money and buildings are in place, the bind moves to the slowest physical input. In Johor that input is the last stretch of grid at the campus gate. ## Which dates test this read next? ![Calendar of dates that test the Malaysia read, from NEWGEN26 awards by year-end and first 300 MW in early 2027 to the July 2027 cable job, the September 2028 substation finish and BMI's 2031 horizon](https://storage.ghost.io/c/cd/10/cd10e222-131f-4ba4-b4a9-ca4214e8c12d/content/images/2026/10/malaysia-johor-data-centre-grid-connection-october-2026-calendar.png) Dates that test the read. · Education only. - **By end-2026 —** NEWGEN26 gas tender winners expected, per RHB. Four bids, 3.6 GW. The first test of where new Peninsular power will come from. - **January 2027 —** RHB expects a separate fuel-cost adjustment rate for data centres to start, so higher fuel costs fall less on homes. - **First quarter 2027 —** YTL Power’s first 300 MW in Johor due to be running, per BMI. A live test of how fast a big campus gets its full power. - **25 July 2027 —** Jati Tinggi’s 275 kV ducting job in Kulai due to finish. - **15 September 2028 —** CBH’s 275 kV substation job at a Johor data centre due to finish. The green-power scheme’s 31 December 2028 deadline follows. - **2031 —** BMI’s horizon: about 30 TWh a year for Johor’s new data centres in its base case. ## What would change this view? - Halls connected on time. If TNB publishes connection numbers showing approved Johor halls powered within a year, at full supply, the stuck step loosens. - Slow fill. If utilisation stays nearer 45% than 65%, BMI’s numbers fall to about 20.8 TWh and the pressure on local substations eases. - Generation slips. If NEWGEN26 is delayed or turbines cannot be delivered, generation becomes the bind instead of the network. - A Peninsula–Sarawak link. A firm plan to connect the two grids would change BMI’s supply picture for the Peninsula. ## Practical takeaways - BMI says Johor’s new data centres could need about 30 TWh a year by 2031, more than 90% of new Peninsular generation - Johor has about 825 MW live and 3.9 GW planned; BMI’s forecast is that pipeline at different use rates - TNB pledges approved data centres a grid connection within a year; major grid works take five to 10 years - Bursa-listed cable and substation contractors hold 275 kV jobs running to 2027 and 2028 - Builders and TNB are paid now; hall owners are paid when power flows; stuck step: the local connection ## FAQ **What did BMI say about Johor's data centres?** In a report dated 22 October 2026, BMI, a Fitch Solutions company, said new data centre capacity in Johor could need about 30 TWh of electricity a year by 2031 in its base case. That is about 18% of Peninsular Malaysia's supply, up from about 6% in 2026, and more than 90% of the net new generation BMI expects on the peninsula over the period. It said grid connections, not total generation, are the main constraint, because demand is bunched around Sedenak and Nusajaya. **What did TNB promise on 27 October?** Speaking at Singapore International Energy Week, TNB's chief distribution network officer said that once a data centre has been approved by the ministry-chaired committee, TNB pledges to get it connected to the grid within one year. BMI's point is that the bigger grid works behind those connections usually take five to 10 years. **Is this investment advice?** No. Education only. It maps who gets paid and which step is stuck. It is not a recommendation to buy or sell any security, and we leave out share prices, broker ratings and price targets on purpose. ## Keep reading on the map - [Malaysia Markets hub](https://www.sotkn.com/markets/malaysia/) — country page - [Paying for unused power](https://www.sotkn.com/markets/malaysia/malaysia-data-centre-unused-power-charge-october-2026/) · [Green power and the grid charge](https://www.sotkn.com/markets/malaysia/malaysia-data-centre-green-power-grid-charge-october-2026/) · [Plugged in vs used](https://www.sotkn.com/markets/malaysia/malaysia-data-centre-power-use-october-2026/) — recent Malaysia Pulses - [DayOne financing and substations](https://www.sotkn.com/markets/malaysia/malaysia-dayone-financing-substation-october-2026/) · [Malaysia’s chip export record](https://www.sotkn.com/markets/malaysia/malaysia-chip-exports-pass-through-october-2026/) · [Princeton Digital Johor loan](https://www.sotkn.com/wire/princeton-digital-1-2b-loan-198-8-mw-johor-data-center-wire/) - [Singapore power plan](https://www.sotkn.com/markets/singapore/singapore-power-plan-data-centres-green-fuel-october-2026/) · [AirTrunk SYD3 and power-on](https://www.sotkn.com/markets/australia/australia-airtrunk-syd3-green-loan-power-on-october-2026/) · [NEXTDC Melbourne line](https://www.sotkn.com/markets/australia/australia-nextdc-melbourne-power-delay-october-2026/) · [Taipower and AI data centres](https://www.sotkn.com/markets/taiwan/taiwan-taipower-ai-data-centre-grid-october-2026/) - [PUE explained](https://www.sotkn.com/explained/pue-explained/) · [AI data center water usage](https://www.sotkn.com/explained/ai-data-center-water-usage/) · [Where AI data centers are located](https://www.sotkn.com/explained/where-are-ai-data-centers-located/) · [What is an AI data center?](https://www.sotkn.com/explained/what-is-an-ai-data-center/) - [Hyperscale vs colocation](https://www.sotkn.com/explained/hyperscale-vs-colocation-data-center/) · [How hyperscalers buy power](https://www.sotkn.com/stack/hyperscalers/how-do-hyperscalers-buy-power/) · [Data center financing explained](https://www.sotkn.com/explained/data-center-financing-explained/) - [If gas turbines stay booked into 2030](https://www.sotkn.com/analysis/if-gas-turbines-stay-booked-into-2030-where-cash-sticks/) · [Where does the stuck step move?](https://www.sotkn.com/analysis/where-does-the-stuck-step-move/) - [AI Data Centers on the stack](https://www.sotkn.com/stack/ai-data-centers/) · [All Markets doors](https://www.sotkn.com/markets/) — Taiwan, Korea, US, China, Singapore, Australia, Malaysia **Get the Wire.** Second Order’s free daily brief on what moved in the AI chip map. [Read the Wire →](https://www.sotkn.com/the-wire/) · [Subscribe free →](https://www.sotkn.com/#/portal/signup) **Members’ Analysis (teaser):** When the money and the buildings are in place, where does the stuck step move? The free line: whoever controls the slowest physical input is paid before whoever owns the building. [Read the Analysis →](https://www.sotkn.com/analysis/where-does-the-stuck-step-move/) **How we check this.** BMI’s forecasts come from its report dated 22 October 2026, as carried on 23 October by Bernama and Business Today; where they round differently (18% or 18.5%) we say so. TNB’s one-year pledge is quoted from Bernama’s report of the Singapore International Energy Week panel, carried by The Star on 27 October. Contract values and dates come from the companies’ Bursa filings as reported by Bernama (Jati Tinggi, 19 October) and The Edge Malaysia (CBH Engineering, 19 August). TNB’s supply agreement totals and the NEWGEN26 bids are as stated in RHB’s sector note of 19 October; the 8.77 GW figure is officials’ number as reported by Bloomberg on 27 October; the SoftBank plan is as reported by The Japan Times and Fortune on 26 October. The grid budget is from TNB’s own Budget 2027 statement. Every sum we worked out is labelled “our arithmetic”. Share prices, broker ratings and price targets are left out on purpose. The references we used are listed at the end. [Our editorial standards →](https://www.sotkn.com/editorial-standards/) Not investment advice. Do your own research. --- ### References 1. Bernama, Johor's power infrastructure faces rising demand from data centre expansion – BMI, 23 Oct 2026\. [bernamabiz.com](https://bernamabiz.com/news.php?id=2624540&ref=sotkn.com) — BMI's 2031 demand share, thermal capacity outlook, grid timelines and connection rules. 2. Business Today, Johor most exposed to power supply constraints as AI data centre demand surges across APAC, BMI, 23 Oct 2026\. [businesstoday.com.my](https://www.businesstoday.com.my/2026/10/23/johor-most-exposed-to-power-supply-constraints-as-ai-data-centre-demand-surge-in-apac-bmi/?ref=sotkn.com) — BMI's utilisation scenarios, PUE assumption, net new generation and the Vantage financing. 3. The Star (Bernama), TNB pledges to connect approved data centres to the grid within one year, 27 Oct 2026\. [thestar.com.my](https://www.thestar.com.my/business/business-news/2026/10/27/tnb-pledges-to-connect-approved-data-centres-to-the-grid-within-one-year?ref=sotkn.com) — TNB's one-year connection pledge at Singapore International Energy Week. 4. Bernama, Jati Tinggi unit secures RM30.10 mln contract for data centre works in Johor, 19 Oct 2026\. [bernama.com](https://www.bernama.com/en/news.php?id=2622651&ref=sotkn.com) — the 275 kV underground ducting job in Kulai and its dates. 5. The Edge Malaysia, CBH Engineering logs record profit in 2Q, bags RM246m data centre substation job, 19 Aug 2026\. [theedgemalaysia.com](https://theedgemalaysia.com/node/815119?ref=sotkn.com) — the 275 kV substation equipment contract and its completion date. 6. RHB Investment Bank via I3investor, Energy – DCs driving growth; stay Overweight, 19 Oct 2026\. [klse.i3investor.com](https://klse.i3investor.com/web/blog/detail/rhbinvest/2026-10-19-story-h502487186-Energy%5FDCs%5FDriving%5FGrowth%5FStay%5FOVERWEIGHT?ref=sotkn.com) — TNB's energy supply agreements and the NEWGEN26 gas tender. 7. Tenaga Nasional Berhad, press release on Budget 2027, 10 Oct 2026\. [tnb.com.my](https://www.tnb.com.my/assets/press%5Freleases/20261010%5F26%5Fbi.pdf?ref=sotkn.com) — the RM15 billion grid allocation within TNB's RM43 billion plan and the Green Lane Pathway. 8. The Business Times (Bloomberg), Iran war boosts Malaysian data centre appeal, SD Guthrie says, 27 Oct 2026\. [businesstimes.com.sg](https://www.businesstimes.com.sg/international/asean/iran-war-boosts-malaysian-data-centre-appeal-sd-guthrie-says?ref=sotkn.com) — signed data centre power agreements and SD Guthrie's land plans. 9. The Japan Times (Bloomberg), SoftBank's Son plans $50 billion Malaysia tech outlay, PM Anwar Ibrahim says, 26 Oct 2026\. [japantimes.co.jp](https://www.japantimes.co.jp/business/2026/10/26/softbank-malaysia-data-center-investments/?ref=sotkn.com) — the SoftBank plan and MIDA's data centre investment total. 10. Fortune, SoftBank weighs $50 billion AI investment in Malaysia, Anwar says, 26 Oct 2026\. [fortune.com](https://fortune.com/2026/10/26/softbank-malaysia-50-billion-ai-investment/?ref=sotkn.com) — the date of the Prime Minister's speech and Nikkei Asia's report on how the plan would be funded.