Kuala lumpur: Data centres are currently responsible for 9.28 per cent of the total electricity consumption, according to the Energy Commission (ST). Its chief executive officer, Siti Safinah Salleh, highlighted that the electricity demands of data centres could fluctuate with the weather, as cooling systems require more energy during hotter periods.
According to BERNAMA News Agency, Siti Safinah noted that power demand is expected to rise in the fourth quarter of the year. This is due to the anticipated online commencement of several data centres in November. She mentioned that while the current power demand stands at over 21 gigawatts, the peak capacity is not expected to increase significantly. However, the introduction of new data centres will contribute to higher overall consumption.
In addressing whether electricity usage by data centres would be capped, Siti Safinah explained that there is no specific limit in place. Approvals are based on the available capacity of the power system. She added that as the system expands, data centres, like any other investors, can integrate based on the system's supply capabilities over the coming years.
Siti Safinah also mentioned that data-centre operators have the opportunity to invest directly in renewable-energy development through the Corporate Renewable Energy Supply Scheme (CRESS). She reported a robust pipeline of applications and interest totaling approximately three gigawatts, with several projects nearing advanced stages.
Furthermore, she noted that no additional gas-fired generation capacity is expected to come online in 2027. This will necessitate the optimization of existing capacity to meet electricity demand. Currently, gas accounts for about 55 per cent of the installed generation capacity and is anticipated to play an increasingly vital role as a transition fuel in the country's energy mix towards 2050.
ST has identified cumulative generation requirements of around eight gigawatts for the period from 2029 to 2031 under its latest three-year planning cycle. The planning committee reviews the country's electricity-system requirements biannually to adapt to changes in the dynamic energy sector.
Separately, during his welcome address at ERI 2026, ST Chairman Datuk Seri Asri Hamidon emphasized that energy reform extends beyond altering the energy mix. It is crucial for Malaysia's economic competitiveness and ensuring the energy system can meet growing demand while remaining affordable, secure, reliable, and safe.
He asserted that achieving energy reform would necessitate coordinated efforts in policy, regulation, market design, infrastructure, and investment, with the industry playing a central role in realizing national ambitions.
The two-day ERI 2026, organized by the ST, brings together various stakeholders to explore how regulatory reforms can serve as a catalyst for investment, competitiveness, and long-term economic prosperity under the theme "Energy Reform, Powering Growth." ERI 2026 has attracted approximately 1,000 participants, a significant increase from over 500 attendees last year.