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

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.