Govt to assess data centres’ actual power, water needs — PETRA

13 Oct 2026, 6:05 AM
Govt to assess data centres’ actual power, water needs — PETRA

KUALA LUMPUR, Oct 13 — The government, through the Energy Transition and Water Transformation Ministry (PETRA), is assessing the actual electricity and water supply requirements of data centres, said PETRA Deputy Minister Datuk Seri Abdul Rahman Mohamad.

He said the Energy Commission (ST) is studying electricity requirements of data centres, as the capacity they have requested is higher than their actual consumption.

“We know data centres request more capacity, but their actual consumption is lower,” he said during the question-and-answer session in the Dewan Rakyat today, in reply to Datuk Seri Tuan Ibrahim Tuan Man’s (PN-Kubang Kerian) question about the capacity of clean electricity generation expected onstream by 2030, as well as the capacity already contracted through agreements with data centres.

Rahman said assessments of data centre investments must consider their benefits to the country and the people, in addition to the substantial investment they bring in.

“The government agrees on the need for data centres related to artificial intelligence (AI). However, assessments must also take into account the types of data handled, the benefits to the people, and electricity and water consumption,” he added.

Replying to a supplementary question from Azli Yusof (Harapan-Shah Alam) on energy supply to support data centre investments, he said electricity demand is high, particularly in the southern Peninsular Malaysia.

“Data centre operators may consider options to provide their own electricity supply, including through solar energy or battery storage systems. However, licensing matters fall under the jurisdiction of the ST, and assessments must take into account the interests of both investors and the country,” Rahman added.

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