Malaysia data centre power approvals reach 12.3GW
The government forecasts maximum electricity demand of 8,391 megawatts from the sector by 2030.
Electricity supply approvals for Malaysian data centre projects totalled 12.3 gigawatts (GW) as of August. The government expects the sector's maximum power demand to reach 8,391 megawatts by 2030.
Energy Transition and Water Transformation Minister Datuk Fadillah Yusof said electricity generation and grid upgrades would proceed in stages, supporting industry expansion while preserving supply reliability. He outlined the approach in a written reply in Parliament to Syerleena Abdul Rashid (PH-Bukit Bendera).
Fadillah said the government's cost-causation principle seeks to make users responsible for extra system requirements pay the associated expenses fairly, rather than unfairly shifting data centre costs to other consumers.
The Ultra High Voltage tariff, effective from July 1, 2025, applies to both established and new data centres taking power at high-voltage or extra-high-voltage levels. It is intended to distribute infrastructure and supply expenses more fairly among large users. A higher Connected Load Charge is also intended to discourage requests for excess capacity and promote efficient use of approved allocations.
Fadillah also said renewable energy must cover at least 30 per cent of a data centre's total electricity demand capacity. Operators can meet this requirement through the Corporate Renewable Energy Supply Scheme and the Solar for Self-Consumption initiative.
Operators are being encouraged to generate their own electricity to lessen reliance on the National Grid, he added. The Energy Commission is preparing a comprehensive framework and guidelines covering self-generation facilities for data centres and other industries.
