{
  "id": 8160222,
  "title": "Ranhill set to ride Johor's data centre, industrial boom",
  "url": "https://urgent.news/2026/09/18/ranhill-set-to-ride-johors-data-centre-industrial-boom",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T02:55:33.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/09/1535264/ranhill-set-ride-johors-data-centre-industrial-boom"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: Ranhill Utilities Bhd stands to gain from Johor's restructuring of its water sector, driven by enhanced tariffs and growing demand from the state's burgeoning data centre and industrial industries. Hong Leong Investment Bank Bhd (HLIB) highlighted that the August 2025 tariff increase in Johor has significantly bolstered Ranhill's earnings prospects. With rising water consumption, both tariff and volume growth are anticipated to fuel stable earnings expansion, while increased tariff collection will facilitate additional investments in water infrastructure.\n\nThe bank emphasized that Johor's rapid development in the data centre and industrial sectors will create a structural growth opportunity for Ranhill through higher water usage. Johor currently houses 8.5 gigawatts (GW) of incoming data centre capacity, complemented by 1.1GW of live IT power capacity, aligning with Tenaga Nasional Bhd's guidance that a significant portion of its 8.35GW signed Electricity Supply Agreement commitments are in the state, with an additional 5GW expected soon. The bank estimates total data centre water requirements at around 400 million litres per day, presenting a structural volume-growth opportunity for Ranhill SAJ.\n\nFurther supporting long-term water demand growth, the bank expects continued industrialization and the Johor-Singapore Special Economic Zone to bolster demand. Ranhill is also projected to invest RM3.5 billion in water treatment plant capital expenditure under the Integrated Water Plan, offering additional earnings upside. Despite these factors, HLIB noted that Ranhill remains underappreciated, trading at a mere 11.9 times its 2027 price-to-earnings (P/E) ratio. The bank calculated a fair value of RM4.20, based on Ranhill's peers' average P/E multiple of 18 times 2027 earnings.",
  "summary": "KUALA LUMPUR: Ranhill Utilities Bhd is well positioned to benefit from the restructuring of Johor's water sector, supported by higher tariffs and rising demand from the state's data centre and industrial boom.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}