JOHOR BARU: The water tariff adjustment gazetted by the Cabinet will result in data centres being charged more for the first time, says Ranhill SAJ.

The chief executive officer of the water utility company, Anuar Abdul Ghani, said the new rates, which took effect on Friday (Aug 1), apply only to certain users and were meant to strengthen the quality and resilience of the state’s water supply system.

“The government set RM5.33 per cubic metre rate specifically for data centres, a fast-growing sector in Johor known for its high water consumption,” he said in a statement on Saturday (Aug 2).

On June 11, the Investment, Trade and Industry Ministry reportedly said that Johor was expected to host 60% of Malaysia’s total data centre capacity by 2030.

It was also reported that there are about 40 to 50 data centre projects in the pipeline in Johor, with 20 of them already approved.

Meanwhile, Anuar said that the new tariff would not impact most domestic accounts and low-income consumers.

“The adjustment affects tier three domestic users – those consuming more than 35 cubic metres of water per month – as well as non-domestic categories.

“Tier one and tier two users, who make up most domestic accounts in Johor, will continue to enjoy the existing water tariff rates,” said Anuar.

He also assured that places of worship and vulnerable groups registered under the e-Kasih programme are not affected by the new rates.

He added that the minimum charge in Johor remains at RM10.50, while consumption exceeding 35 cubic metres per month would incur an additional 35 sen per cubic metre.

Bulk meter users in strata housing will see an increase of 20 sen per cubic metre.

“For non-domestic users, the adjustment ranges between RM1 and RM1.75 per cubic metre, with a new minimum monthly charge of RM41.50,” he said, adding that the shipping industry would be charged RM8.03 per cubic metre.

Anuar added that the tariff revision is part of efforts to modernise Johor’s water supply system and ensure it can meet rising demand from rapid development and population growth.

The adjustment will also support key upgrading projects, including the second phase of the Layang 2 package with a capacity of 160 million litres per day (MLD), as well as Semanggar (50 MLD) and Semanggar 3 (120 MLD), he added.