TECHNOLOGY

Malaysia's data centres guzzling more power as temperatures soar, officials say

PUBLISHED Sep 8, 2026, 3:35 PM ET

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Malaysia's data centres guzzling more power as temperatures soar, officials say

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Sources: 10

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Sources: 10

Malaysia is facing an impending energy infrastructure challenge as soaring temperatures and rapid digital expansion drive unprecedented electricity consumption by data centres. Energy Commission officials reported that power usage by these facilities reached a record 9.3% in August, fueled by the heavy cooling loads required during hot weather. As major global technology firms invest billions of dollars into the Southeast Asian hub, peninsular Malaysia's power demand from data centres could surge up to 31% by 2035. To support this growth while gradually retiring coal-fired plants by 2044, the government must expand gas-fired capacity by 9 gigawatts by 2032. However, with no new gas power plants scheduled to come online through next year, authorities plan to optimize the existing fleet. Industry experts note that while low hydro dam levels and regional fuel constraints complicate the near-term outlook, the long-term demand increase remains manageable within standard grid planning parameters.

By Lauren Mitchell | JQJO News

Timeline of Events

On September 8 2026 Malaysian energy officials reported surging data centre power consumption.
On September 8 2026 Officials announced a nine gigawatt gas capacity gap.
On September 8 2026 Economy minister Akmal Nasir confirmed coal phaseout plans.
On September 8 2026 Energy commission CEO Siti Safinah Salleh highlighted cooling loads.
On September 8 2026 Officials warned that local hydro dams faced low levels.
On September 8 2026 Analysts projected data centres reaching thirty percent demand.
On September 9 2026 Researchers assessed regional grid stability amid rising temperatures.
On September 9 2026 Market observers tracked global cloud investments in Malaysia.
On September 9 2026 Experts evaluated short-term gas fleet optimization measures nationwide.
On September 9 2026 Officials confirmed predictable long-term power demand ramp parameters.

News Intelligence

Immediate US impact: Increased pressure on global technology supply chains and energy markets.
Possible long-term US impact: Potential shifts in overseas tech infrastructure investment and energy strategies.
Most affected groups: Global technology firms, domestic utilities, energy investors, and Malaysian consumers.
Reader priority: Monitor official regulatory filings, utility disclosures, and energy market updates.

Media Bias

Articles Published:: 10
Right Leaning:: 0
Left Leaning:: 0
Neutral:: 10

Explain Framing

Left: Infrastructure strains highlight urgent need for aggressive green energy transitions. Center: Officials report data centre power surges and long-term capacity gaps. Right: Rapid tech investments drive power demand requiring pragmatic fossil fuel solutions.