Over-reliance on one source can undermine long-term sustainability, reliability of its data centres, says expert
As Johor attracts billions in data centre investments, an expert is calling for more diverse renewable energy sources, warning that an over-reliance on solar power can harm long-term reliability.
Petroliam Nasional Bhd (PETRONAS) energy transition solutions specialist Izleena M. Iqbar said solar energy alone could not meet the growing power demands of data centres, due to intermittency issues.
“There is a high potential for onshore solar in this state, but the intermittency puts a strain on the grid.
“Therefore a stable energy mix is needed, one that combines solar power with other renewable energy such as pumped hydro storage, mini-hydro systems, biogas and wind, especially since Johor has an abundance of these untapped resources,” she said during a panel discussion at Schneider Electric Innovation Day 2025 in Johor Baru.
Izleena said PETRONAS had tested and implemented a scalable model in Kuala Nerus, Terengganu, where a mixed renewable energy microgrid supplies consistent power.
“The microgrid’s energy mix combines offshore wind, floating solar, and onshore rooftop solar systems, all supported by a battery energy storage system.
“This setup, powered by Schneider Electric’s energy management system, allows the team to understand and evaluate the performance of the entire energy mix in real time.
“The platform regulates output, ensuring a steady and reliable energy source.
“As a result, the system’s model is replicable and scalable for use anywhere because it is built from an off-the-shelf solution,” she added.
She said knowledge gained through partnerships with tech specialists had equipped PETRONAS to support Johor’s energy transition ambitions, especially as data centres required enormous and consistent power supply.
“I believe Johor has what it takes.
“The renewable potential is there and it just needs to be integrated smartly,” she added.
Energy requirement of data centres is not the only concern for Johor.
On June 11, state executive councillor Lee Ting Han said several data centres in Johor were exploring the use of alternative water sources, including waste water, to reduce reliance on treated water supply.
The investment, trade, consumer affairs and human resources committee chairman said a data centre was already in the process of using such an alternative, with the help of Indah Water Konsortium (IWK) and state-owned Johor Special Water (JSW).
Meanwhile, state housing and local government committee chairman Datuk Mohd Jafni Md Shukor said all new data centre applications must be vetted by the Johor Data Centre Development Coordination Committee (JPPDNJ).
Johor recorded RM164.45bil in investments from 42 data centre projects as of end-2024, generating 6,145 job opportunities for locals.
Of the 42, 13 data centres have started operating, 15 are under construction, while the remaining 14 have been vetted and approved by JPPDNJ, said Mohd Jafni.
