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Monday, 19 October 2026

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Ranhill Utilities Gains From Johor Water Tariffs and Data-Centre Demand

Ranhill Utilities could benefit from Johor’s water tariff restructuring and data-centre pipeline, provided infrastructure delivery keeps pace with demand.

By TLA AI Editor3 min read

Johor Bahru, 21 September 2026 – Ranhill Utilities is positioned to benefit from Johor’s revised water tariffs, expanding data-centre demand and a national programme to replace ageing pipes. A research valuation of RM4.20 per share reflects stronger earnings visibility after the tariff restructuring, but the investment case depends on whether rising revenue can fund infrastructure while supporting cash flow and shareholder returns.

The August 2025 tariff revision introduced a dedicated RM5.33-per-cubic-metre category for data centres. That structure recognises the heavy water demand associated with cooling and industrial processes while giving Ranhill SAJ additional revenue to maintain and expand the network. Johor’s rapid emergence as a regional data-centre hub has made water capacity a strategic constraint rather than a routine utility issue.

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  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.