Minister: Energy transition for data centre growth will not harm electricity supply

LocalPolitics
17 Feb 2025 • 12:40 PM MYT
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Minister: Energy transition for data centre growth will not harm electricity supply

DEPUTY Prime Minister Datuk Seri Fadillah Yusof has assured that efforts are underway to ensure that there exists sufficient renewable energy (RE) supply for data centres in Malaysia without disrupting the national energy grid or causing electricity tariff increases.

In response to concerns raised by Saratok MP Datuk Ali Anak Biju in the Dewan Rakyat today on the growing demand for renewable energy (RE) with regards to data centre development, Fadillah said currently, Malaysia has 18 operational data centres consuming at least 800 MW of electricity and the figure is expected to rise to 81 by 2035.

Fadillah, who is also Minister of Energy Transition and Water Transformation, said: “Recognising the energy-intensive nature of data centres, the government has introduced initiatives like the Power Usage Effectiveness (PUE) standards and guidelines to optimise energy efficiency.

He added the government is committed to gradually increasing the renewable energy mix in the country’s power supply, aiming for 31% by 2025, 40% by 2035, and 70% by 2050.

The minister said programmes like Feed-in-Tariff (FiT), Large Scale Solar (LSS), and Corporate Green Power Program (CGPP) are among the strategies to achieve these targets.

And, to facilitate easier access to green electricity for corporations, including data centres, the Corporate Renewable Energy Supply Scheme (CRESS) has been launched.

“This initiative allows data centres to source green energy directly from renewable energy producers while contributing to the strengthening of the electricity grid system to prevent potential cost burdens on general consumers,” Fadillah added at the Parliamentary session. – February 17, 2025