Archive · 8 Sep 2026
Malaysia Data Centres Drive Power Demand as Temperatures Rise
Malaysia is using more electricity because it is building many data centres.
Data centres need a lot of power, especially when the weather is hot because their cooling systems work harder.
In August, data centres used 9.3% of the country’s electricity, compared with an average of 7% this year.
Officials think they could use nearly one-third of Peninsular Malaysia’s electricity by 2035.
Malaysia is moving away from coal and plans to close its last coal plant by 2044.
It may need 9 gigawatts of new gas-powered electricity by 2032.
For now, officials plan to use existing power plants more efficiently because new gas capacity is not expected this year or next.
An industry consultant said the electricity grid can handle the expected growth for the near future.
Data centres accounted for a record 9.3% of overall power consumption in Malaysia during the second week of August, up from a 7% average this year.
Officials said data centres could represent 31% of Peninsular Malaysia’s power demand by 2035.
Malaysia expects to add 9 gigawatts of gas-fired capacity by 2032 as it phases out coal-fired power.
The country plans to retire its last coal-fired power plant by 2044, while no additional gas-fired capacity is expected this year or next.
An industry consultant said Malaysia’s rising data-centre demand remains within grid-planning parameters and should not cause near-term shortages.
- Who
- Malaysia’s Energy Commission officials, Economy Minister Akmal Nasir, and data-centre consultant Gary Goh.
- What
- Rising data-centre electricity use is increasing pressure on Malaysia’s power system and creating a projected need for additional gas-fired capacity.
- When
- The increase was reported on September 8; data-centre consumption reached a record share in the second week of August, with projections extending to 2032, 2035, and 2044.
- Where
- Malaysia, particularly Peninsular Malaysia.
- Why
- Hotter weather increases cooling-system electricity use, while expanding data-centre deployments and the planned phase-out of coal are raising future power needs.
Capacity Concern
Grid Confidence
Future electricity supply
Capacity Concern
Energy officials said Malaysia faces a 9-gigawatt gas-fired capacity gap by 2032 and that data centres could account for 31% of Peninsular Malaysia’s demand by 2035.
Grid Confidence
Gary Goh of Sprint DC Consulting said the demand surge is within grid-planning parameters and will continue to increase predictably.
Near-term shortages
Capacity Concern
Officials noted that no additional gas-fired power is expected to come online this year or next, while hotter weather and low hydro-dam levels are increasing pressure on supply.
Grid Confidence
Goh said Malaysia does not face power shortages in the near future because of rising data-centre deployments.
- Data-centre power share
- 9.3% of overall power consumption in the second week of August
- Average power share in 2025
- 7% on average this year
- Projected 2035 share
- Up to 31% of Peninsular Malaysia’s power demand
- Required gas capacity
- An additional 9 gigawatts by 2032
- Coal phase-out target
- Malaysia plans to retire its last coal-fired power plant by 2044
- Near-term capacity plan
- The existing gas-fired fleet will be optimised through the end of 2027
- Weather impact
- Hot conditions increased cooling demand and left hydro dams at very low levels