Kuala Lumpur (VNA) – Electricity consumption by data centres in Peninsular Malaysia is projected to surge from 7% of total demand in 2026 to 31% by 2035, according to Minister of Energy Transition and Water Transformation Fadillah Yusof.
Fadillah reported that electricity use by the data centre sector is expected to increase from 10,544 GWh in 2026 to 73,274 GWh by 2035.
In a written reply to Parliament, the minister said the government, through the Energy Commission, is closely monitoring rising electricity demand, particularly in Peninsular Malaysia, to ensure the country's power supply remains secure and reliable.
The rapid growth of artificial intelligence (AI) and data centre industries will also drive a sharp increase in peak electricity demand, he noted, adding that peak demand in Peninsular Malaysia is projected to grow at a compound annual growth rate of 5.1% between 2026 and 2035, rising from 21.3 GW in 2026 to 33.5 GW by 2035.
To ensure electricity supply security, he said the Malaysian government and the Energy Commission are implementing several measures, including extending the operation of existing thermal power plants as a short-term solution.
The minister said the commission is also carrying out a request for proposal exercise to add new gas-fired generation capacity to strengthen Peninsular Malaysia's baseload electricity supply.
Data centre operators could also procure renewable energy directly from private developers under the Corporate Renewable Energy Supply Scheme through the Third-Party Access mechanism.
He added that the government is accelerating the development of large-scale solar projects, targeting a combined renewable energy generation capacity of 4GW for the Peninsular Malaysia grid.
At the same time, the official said the government is encouraging data centre operators to generate their own electricity based on their operational needs instead of relying entirely on the national grid./.
