KUALA LUMPUR, July 1— Electricity consumption by the data centre sector is expected to increase significantly to 31 per cent — equivalent to 73,274GWh’ — by 2035, up from 7 per cent or 10,544GWh in 2026.
The Energy Transition and Water Transformation Ministry (PETRA) said the figures are based on projections by the Electricity Supply and Tariff Planning and Implementation Committee (JPPPET). According to the ministry, the rapid growth of the artificial intelligence (AI) and data centre industries has led to an increase in the country’s peak electricity demand.
“Peak demand in Peninsular Malaysia is projected to grow at a compound annual growth rate (CAGR) of 5.1 per cent between 2026 and 2035, rising from 21.3GW in 2026 to 33.5GW by 2035,” it said in a written parliamentary reply dated June 30 on the Parliament website.
PETRA was responding to a question from Chong Zhemin (Harapan-Kampar) about the country’s readiness to meet rising electricity demand from data centres and the AI industry. In this context, the ministry said the government, together with the Energy Commission (ST), is implementing several measures to ensure a stable and reliable electricity supply.
These include identifying and extending the operation of existing thermal power plants as a short-term solution, as well as conducting open bidding by ST to add gas-based generation to strengthen Peninsular Malaysia’s baseload power generation. In addition, the ministry said that through the Corporate Renewable Energy Supply Scheme (CRESS), data centres have the option of purchasing renewable energy directly from private developers via the third-party access system.
The government is also developing Large Scale Solar (LSS) projects under the LSS5 and LSS5+ programmes, which aim to add a total of 4GW of renewable energy capacity to Peninsular Malaysia’s electricity supply system. The government is also encouraging data centres to generate their own electricity based on their individual demand requirements instead of relying entirely on the national grid.
“Through this approach, data centres can reduce their dependence on the grid, thereby helping to ensure the continued stability of the national electricity system,” the ministry said.
The government, through the Data Centre Task Force (DCTF), has also adopted a stringent screening process for new data centre applications and proposals to expand the capacity of existing facilities.
This coordination is to support the sustainable, competitive, strategic and investor-friendly development of Malaysia’s data centre ecosystem, it said.
“Approval for new data centre applications will only be granted if they are aligned with local grid capacity planning, without ever compromising the safety, security and reliability of electricity supply to the public,” PETRA added.
