Key facts
- Malaysia's data centers are consuming more power due to rising temperatures.
- Data centers' share of total power consumption hit a record 9.3% in the second week of August.
- Malaysia needs to add 9 GW of gas-fired capacity by 2032.
- The country plans to retire its last coal-fired power plants by 2044.
- Malaysia is attracting billions in investment from global tech firms.
Malaysia's data centers are experiencing a surge in power consumption due to soaring temperatures, highlighting a significant energy demand challenge for the nation. The share of data centers in the country's overall electricity consumption reached a record 9.3% in the second week of August, up from an average of 7% this year, according to Siti Safinah Salleh, CEO of the Energy Commission.
Salleh explained that the increased demand is driven by the higher energy required for cooling systems during the hotter weather. This trend is occurring as Malaysia, a rapidly growing data center hub in the region, aims to transition away from coal-fired power. The country plans to retire its final coal plants by 2044.
To address the rising power needs, particularly from the burgeoning data center sector attracting billions in investment from tech giants like Amazon and Microsoft, Malaysia's economy minister Akmal Nasir stated that the nation must augment its gas-fired capacity by 9 gigawatts (GW) by 2032. However, with no additional gas-fired power generation expected to come online in the next two years, the Energy Commission will focus on optimizing the current fleet to meet demand until the end of 2027.
Salleh also noted that the hot weather has led to critically low levels in the country's hydroelectric dams, further complicating the energy supply situation.