Contract awarded for critical power infrastructure development in Johor
On 16 December 2024, Kuala Lumpur-based engineering firm Jati Tinggi Group Bhd announced that it secured a RM117.17 million contract from Tenaga Nasional Bhd (TNB). The contract involves building a 275-kilovolt (kV) bulk supply connection for a data centre in Johor. Through this Jati Tinggi TNB contract, Malaysia continues to strengthen its power infrastructure to support rising data centre demand. Notably, the southern region near Johor Bahru has experienced rapid industrial and technological expansion.
Project scope and joint venture details underscore engineering collaboration
According to a Bursa Malaysia filing, Jati Tinggi confirmed that its subsidiary, Jati Tinggi Holding Sdn Bhd, will collaborate with Idiqa Holding Sdn Bhd through an unincorporated joint venture. Following this, TNB issued an official letter of acceptance, which confirmed the project award. The contract covers the supply, erection, testing, and commissioning of the 275kV Jelutong switching station in Johor. Importantly, the bulk supply connection meets the specific technical requirements of the data centre.
Under the joint venture agreement, Jati Tinggi holds a 70 per cent profit share, while Idiqa holds the remaining 30 per cent, subject to mutual agreement if adjustments become necessary. The project will begin on a date yet to be determined. However, the agreement takes effect no later than 16 December 2024. The construction period will span 730 days, and a one-year defect notification period will follow project completion.
The technical and operational aspects receive official oversight from regulatory bodies
In a Bursa Malaysia filing, Jati Tinggi confirmed that its subsidiary, Jati Tinggi Holding Sdn Bhd, will work with Idiqa Holding Sdn Bhd through an unincorporated joint venture. TNB issued an official letter of acceptance to the joint venture, confirming the project award. The scope includes the supply, erection, testing, and commissioning of the 275kV Jelutong switching station in Johor. The bulk supply connection is designed to meet the specific needs of the data centre.
Under the joint venture agreement, Jati Tinggi holds a 70 per cent profit share, while Idiqa holds 30 per cent, subject to mutual agreement if changes are required. The project will commence on a date to be determined, but no later than 16 December 2024. The construction period is set at 730 days, followed by a one-year defect notification period.
Industry stakeholders and public monitor Jati Tinggi TNB contract progress attentively
Industry discussions on engineering platforms and social media show strong interest in the project’s impact on Malaysia’s power supply, especially for data centre infrastructure. Analysts observe that the collaboration between Jati Tinggi and Idiqa reflects stronger partnerships within the local engineering sector. They also note that joint ventures remain an effective way to combine technical expertise and resources.
Jati Tinggi TNB contract expected to influence regional power supply stability and engineering standards
In the short term, construction activities near Jelutong, Johor, may require temporary traffic adjustments. Authorities plan to coordinate these measures to limit public disruption. Over the longer term, the upgraded 275kV bulk supply connection is expected to improve power reliability and support rising electricity demand from data centres and other industries in southern Malaysia.
The project also applies strict safety controls during construction and commissioning. These measures align with national engineering best practices and may help raise industry standards. Successful project delivery is likely to support Jati Tinggi’s earnings and net asset values, reflecting the economic importance of large-scale infrastructure projects.
Overall, the contract highlights Malaysia’s continued focus on expanding critical infrastructure to support technological growth. Johor remains a key location due to its strategic role in industrial development and digital transformation.
Location: KUALA LUMPUR
Date: 2025-12-16