Malaysia’s data centre power needs could open gas market for Petronas
Minister Johari Abdul Ghani said the opportunity would depend on gas being supplied at market prices without subsidies.
Petroliam Nasional Bhd (Petronas) could find a new domestic outlet for natural gas as data centres increase Malaysia’s electricity needs, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said.
Speaking at the Bursa Malaysia Sectoral Series: Powering the AI Era, Johari said supplying gas for electricity generation could offer a commercially attractive opportunity, provided prices were market-based and unsubsidised.
He contrasted wholesale gas pricing under long-term export contracts, including those with Japan, with the possibility of selling electricity to data centres at retail prices. Petronas could pursue the domestic opportunity while continuing exports, he said.
Johari also identified scope to broaden Malaysia’s energy sources by combining solar generation with battery energy storage systems (BESS). He said batteries could help manage supply fluctuations by holding surplus electricity for use when needed.
The additional demand could draw investment into generation, storage, grid technology, engineering and local supply chains, he said. He called for capital to be directed towards meeting the country’s long-term energy needs.
Johari said Malaysia needed infrastructure to support a competitive digital economy, rather than focusing only on attracting data centres. That development should preserve reliable, affordable electricity for households and existing industries while ensuring sustainable management of natural resources, he added.
