Kuala lumpur: Malaysia needs to modernise its power systems to build a low-carbon economy that is competitive, inclusive, and resilient, said Deputy Prime Minister Datuk Seri Fadillah Yusof. Fadillah, who is also the Energy Transition and Water Transformation Minister, emphasized the importance of digitalising the economy with trustworthy artificial intelligence (AI) and translating climate ambitions into bankable and investable projects as crucial steps for Malaysia to achieve its goals.
According to BERNAMA News Agency, Fadillah urged utilities to advance projects that measurably reduce curtailment, accelerate connections, and strengthen systems against extreme weather. He also called on manufacturers and building owners to implement AI-enabled efficiency, demand response, and storage solutions, sharing lessons learned to make aggregated demand a reliable system resource. Fadillah made these remarks during his opening keynote address at the Global AI, Digital and Green Economy Summit 2025.
Fadillah highlighted the government's expectation for data centres and AI compute investors to prioritize efficiency and clean energy from the start, while working closely with utilities to manage grid impacts responsibly. He invited financiers to properly price integrity, resilience, and speed to impact, and to enhance partnerships among ASEAN countries to expand interconnectors and harmonise rules, ensuring clean power can flow where it is needed most.
The Deputy Prime Minister pointed out that the grid remains the primary bottleneck. Without faster expansion and digitalisation of transmission and distribution, renewable energy growth will stall. He also noted the increasing demand from AI training and inference, which is reshaping load patterns and stressing local infrastructure. Only projects that meet stringent efficiency and clean energy thresholds, and that co-invest in grid reinforcements where necessary, will receive support.
Fadillah stressed that integrity must remain the foundation of these efforts. Carbon credits, renewable energy certificates, and 'AI for good' initiatives must withstand independent scrutiny and maintain full transparency. Within the government, policies, regulations, and procurement are being aligned to ensure AI becomes an enabler of grid resilience. He concluded by reaffirming Malaysia's commitment to building a modern grid, fostering a digital economy powered by trustworthy AI, and establishing climate finance systems that achieve real-world decarbonisation.