Peninsular Malaysia power use seen up 4.9% in 2027 on data centre growth

KUALA LUMPUR, Oct 9 : State-run utility firm Tenaga Nasional Berhad expects electricity consumption in Peninsular Malaysia to reach 148.66 terawatt hours in 2027, as rapid data centre expansion drives up power demand, a government report said on Friday.

• This would represent average annual growth of about 4.9 per cent, following projected consumption of 141.87 TWh in 2026, according to an economic outlook report released alongside the 2027 budget

• "Data centres are one of the clearest examples of why Malaysia needs more electricity as Malaysia has attracted large amounts of investment in this sector," it said.

• Actual electricity use by data centres reached 710 MW in 2025 compared to 405 MW in 2024, the report said

• Malaysia has emerged as Southeast Asia's fastest-growing data-centre hub, attracting billions of dollars in investment from global technology firms including Amazon, Google and Microsoft

• Continued investment in electricity generation, transmission networks and grid infrastructure was necessary to ensure Malaysia meets growing domestic demand and maintains reliable and secure supply, the government said

• The report, citing the Energy Transition and Water Transformation Ministry, projected electricity demand from data centres could reach 12.9 GW by 2030 and 20.9 GW by 2040.

• "To manage this growth, Malaysia needs to expand its electricity grid while increasing the availability of renewable energy," the report said.

• Malaysia is targeting 40 per cent renewable energy capacity by 2035 and 70 per cent by 2050