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Data Centres and Severe Heatwaves Strain Malaysia’s Power Grid, Forcing 9GW Gas Expansion

jeffrey by jeffrey
09/09/2026
in News
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Data Centres and Severe Heatwaves Strain Malaysia’s Power Grid, Forcing 9GW Gas Expansion

PETALING JAYA, 8 Sept -- Menteri Ekonomi Akmal Nasrullah Mohd Nasir berucap ketika merasmikan Wawasan Kawal Selia Tenaga 2026 di Bandar Sunway, hari ini. --fotoBERNAMA (2026) HAK CIPTA TERPELIHARA PETALING JAYA, Sept 8 -- Economy Minister Akmal Nasrullah Mohd Nasir delivers his speech while officiating the Energy Regulatory Insights 2026 at Bandar Sunway today. --fotoBERNAMA (2026) COPYRIGHT RESERVED

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KUALA LUMPUR – Malaysia’s Energy Commission (ST) and the Ministry of Economy reported that peak national energy demand has reached a new high of over 21GW and is expected to expand significantly owing to structural industrial growth. In August, data centre deployments consumed a record 9.3% of total Peninsular electricity. Additionally, El Niño-driven heatwaves reduced hydroelectric dam reservoirs, putting a pressure on national utility infrastructure. To avoid grid capacity shortages and assist the phase-out of coal-fired generation by 2044, the government has pledged to build a 9GW gas-fired power expansion by 2032. With thermal power demands increasing and base electricity tariffs subject to capacity grid pressures, industrial plant managers face rising operational costs, reinforcing the commercial incentive to use localised, high-efficiency alternative fuels such as Re-Refined Base Oil (RRBO) to stabilise factory utility budgets. 

For more information, click here to read more. 

(Source: The Star) 

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