Malaysia Data Centres Drive Up Power Demand

Malaysia faces a nine gigawatt gas capacity gap by 2032 as rising temperatures increase power consumption at data centres. Officials report energy use surged to a record high in August while the nation phases out coal power.

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FILE PHOTO: A worker walks past a data centre in Johor state, which has become Southeast Asia's fastest-growing data centre hub, at Gelang Patah, Malaysia May 7, 2026. REUTERS/Hasnoor Hussain/File Photo

Malaysia's data centres drove power consumption to a record 9.3% in the second week of August amid surging temperatures, officials said Tuesday. The power spike leaves a 9 gigawatt capacity gap that requires extensive infrastructure expansion by the end of the decade. The Southeast Asian nation is grappling with cooling demands while navigating regional fuel supply pressures.

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