Malaysia continues to assess data centre energy needs

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Malaysia data centre energy assessment

Highlights

The Malaysian government is assessing actual electricity and water supply demand for data centres, with the Energy Commission reviewing the sector's usage patterns.
Data centre electricity demand remains high in southern Peninsular Malaysia, driven by continued investment interest through 2030.
Data centre operators may opt for self-supply options such as solar energy or batteries, with licensing under the Energy Commission and assessments balancing the interests of investors and the country.

This article was translated from the original. Read the original version by our correspondent here.

Assessing electricity and water demand

As reported by The Edge Malaysia, the government, through the Ministry of Energy Transition and Water Transformation, is assessing the actual electricity and water supply requirements of data centres, while the Energy Commission is reviewing the sector's actual usage patterns.

Deputy Minister Datuk Seri Abdul Rahman Mohamad said data centres typically request supply capacity that is higher than their actual consumption. He made the remarks during a question-and-answer session in the Dewan Rakyat in response to a question about the amount of new clean electricity generation capacity expected to come online by 2030, as well as capacity contracted through electricity supply agreements with data centres.

According to him, assessments of data centre investments must consider not only the investment value brought in, but also their benefits to the country and its people. The government also agrees on the need for data centres related to artificial intelligence, but the type of data handled and electricity and water usage are also key considerations.

Supply pressure and operators' self-supply options

Abdul Rahman said electricity demand remains high, particularly in the southern part of Peninsular Malaysia, as the country continues to attract data centre investment interest.

In this context, data centre operators may consider options to provide their own electricity supply, including through solar energy or battery storage systems. However, licensing falls under the jurisdiction of the Energy Commission, and any assessment must balance investors' interests with those of the country.

In our previous coverage of the RM47.5 million electricity subcontract secured by Kinergy for a hyperscale data centre in Port Dickson, we explained how such projects require the design, installation, testing and commissioning of high-capacity power infrastructure. We also highlighted that rising investment in data centres and cloud computing continues to drive demand for specialised engineering and power supply, providing context for the current discussion on the sector's actual electricity and water needs.

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