Malaysia’s rapidly expanding data centre industry is becoming an increasingly important national issue, with rising temperatures driving higher electricity consumption for cooling systems.
A recent report found that data centres accounted for a record 9.3% of Malaysia’s overall electricity consumption in the second week of August, compared with an average of 7% for the year. Reuters
- Malaysia is now one of Southeast Asia’s fastest-growing data centre hubs.
- Higher temperatures are increasing the amount of electricity needed to cool data centres.
- Data centres could account for as much as 31% of Peninsular Malaysia’s electricity demand by 2035.
- The government expects additional gas-fired generation capacity will be needed as Malaysia gradually phases out coal-fired power.
- For residents in Puchong and the wider Klang Valley, the development is relevant because the region is part of Malaysia’s rapidly growing digital and technology ecosystem.
As more technology companies expand their operations in Malaysia, balancing digital investment, electricity demand and long-term energy security is becoming an increasingly important national issue.
Source: Reuters
Published Date: 2026-09-11T01:10:00Z