Key facts
- Malaysia is pursuing growth as Southeast Asia's data-centre capital.
- The country has committed to reducing fossil fuel use by 2050.
- Operational data centres in Malaysia are projected to increase from 54 in 2024 to 81 by 2035.
- The expansion of data centres is currently increasing demand for natural gas.
Malaysia is actively working to establish itself as the leading data-centre hub in Southeast Asia. This ambition, however, is currently at odds with its commitment to reduce fossil fuel consumption by 2050. The burgeoning data centre industry is driving up demand for natural gas, creating a conflict with the nation's clean energy objectives. Government figures indicate that Malaysia had 54 operational data centres by the end of 2024, a number anticipated to grow to 81 by the year 2035. This expansion directly contributes to increased natural gas consumption, posing a challenge to the country's environmental goals.