Data centres currently account for 9.28% of Malaysia’s total electricity use, according to the Energy Commission (ST).
That share could grow as several more data centres are expected to start operating around November. ST chief executive officer Siti Safinah Salleh said data centres also use more electricity when the weather is hotter because their cooling systems have to work harder.
She expects Malaysia’s electricity use to increase in the fourth quarter of 2026.
Malaysia’s peak electricity demand is currently above 21 gigawatts. Siti Safinah said she does not expect peak demand to rise much, even though total electricity use will increase as data centres come online.
Data Centres Are Approved Based On Available Supply
There is no fixed limit on how much electricity a data centre can use. Instead, new projects are approved based on how much electricity is available in the power system.
Data-centre operators can also invest directly in renewable energy through the Corporate Renewable Energy Supply Scheme (CRESS).
Siti Safinah said ST has a pipeline of CRESS applications and expressions of interest amounting to around 3 gigawatts, with several projects already at an advanced stage.
8GW More Electricity Will Be Needed By 2031
ST estimates that Malaysia will need around 8 gigawatts of additional electricity supply between 2029 and 2031.
No new gas-powered electricity plants are expected to start operating in 2027. Malaysia will instead need to make better use of its existing power plants to meet demand.
Gas currently makes up about 55% of Malaysia’s electricity-generating capacity and is expected to play a growing role as a transition fuel as the country works towards its 2050 energy goals.
Siti Safinah said the committee responsible for planning Malaysia’s electricity supply reviews the country’s needs twice a year to account for changes in demand.
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