Johor Menteri Besar Datuk Onn Hafiz Ghazi stated that the Johor state government will never approve any project, including data centre developments, if it causes hardship to the populace, Bernama reported.
According to him, a responsible government will consider a number of factors before approving any development project and won’t risk the welfare of the populace in order to draw large investments.
In a recent interview with a Bernama team headed by Editor-In-Chief Arul Rajoo Durar Raj at Saujana, the Menteri Besar’s official residence, Onn Hafiz stated, “We will never allow the people to suffer by making irresponsible decisions.”
He acknowledged that the state’s adequate supply of water and electricity has frequently become a topic of discussion since Johor became a hub for international businesses seeking to build data centres, raising concerns about the increase in utility consumption needed to run such facilities.
In order to guarantee the stability of the state’s water supply, he said, the state and federal governments have thoroughly examined Johor’s water supply planning, encompassing short, medium, and long-term projects.
Onn Hafiz, a state assemblyman from Machap, stated that 38 projects totalling RM15.3 billion will be carried out to support the needs of the populace and the swift expansion of the state’s industrial and investment sectors while bolstering efforts to guarantee water supply security in Johor.
He stated that the state government will evaluate applications for data centre construction and look into the water and electricity needs of the participating companies through the Johor State Data Centre Development Coordinating Committee (JPPPDNJ).
He emphasised that only Tier 3 and Tier 4 data centre developments that employ air-cooling technology—which doesn’t require a lot of water—will be approved by the committee.
“We will not approve a data centre if it demands a high intake of water,” he reiterated.
Onn Hafiz stated that although there are no data centres in Simpang Renggam and Benut, some parties claimed that recent water supply disruptions in those areas were connected to data centre developments.
“I urge the people of Bangsa Johor to exercise caution when they hear incitement and careless news. Prior to making any decisions, information must be verified, he stated.
He stated that he felt compelled to clarify the situation because he was concerned that it would unnerve investors.
“Matters like this will have an impact on investors entering the state. If they believe what is being said, they will pull the handbrake and avoid investing in Johor.
“That is why I chose to speak out – to instill confidence not only in the Bangsa Johor community, but also in investors looking to invest in Johor. “The most important thing is that we keep building that confidence,” he said.
Johor has emerged as the country’s leading data centre investment destination, with 42 projects totalling RM164.45 billion approved as of the second quarter of 2025.
The development added about 7.8% to Malaysia’s operational information technology (IT) capacity and created approximately 6,000 high-skilled jobs. By 2030, Johor is expected to account for approximately 60% of the country’s data centre capacity.
Last year, the state government was said to have halted new approvals for Tier 1 and Tier 2 data centre projects.
