KUALA LUMPUR: Almost all data-centre projects with electricity supply agreements signed with Tenaga Nasional Bhd (TNB) have pledged to run on clean electricity, said Malaysian Investment Development Authority (MIDA) chairman Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz.
He said TNB had signed electricity supply agreements for close to 60 data-centre projects, highlighting the growing importance of renewable energy as Malaysia expands its digital economy.
“Nowhere is this clearer than in data centres. Our national utility, Tenaga Nasional, has signed supply agreements for close to 60 data centre projects, and almost every single one has pledged to run on clean electricity,” Zafrul said in his keynote address at the 7th International Sustainable Energy Summit (ISES) 2026 here today.
He said mechanisms including the Corporate Green Power Programme (CGPP), Corporate Renewable Energy Supply Scheme (CRESS) and successive Large Scale Solar (LSS) programmes were expanding access to renewable electricity for large consumers.
“Through CGPP, large consumers can now go straight to renewable developers and contract clean power directly, there’s no middleman, there’s no delay,” he said.
Zafrul said access to clean and reliable electricity was becoming increasingly important to Malaysia’s investment competitiveness, particularly as manufacturers and multinational companies faced greater pressure to reduce their carbon footprint.
“This is not a favour we do for foreign investors; it is an investment in our own industrial survival because Malaysian manufacturers are now judged on their carbon footprint,” he said.
He said Malaysia had approved close to RM10 billion in renewable investments between 2023 and 2025, spanning solar, hydropower and bioenergy.
Zafrul also warned that timely grid upgrades would be crucial as electricity demand from data centres and other energy-intensive industries continued to grow.
“One supply shock, one delayed grid upgrade, that is all it will take to unravel years of investor confidence within months,” he said.
He said artificial intelligence was already being deployed in grid-management pilot projects to forecast electricity demand, optimise energy storage and reduce wastage.
“AI is no longer a buzzword for us; it is being put to work,” he said.
