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Record Power Surge: Data Centers Strain Malaysia Grid
10 Sep
Summary
- Data centers now use 9.3% of Malaysia's power, up from 7%.
- Malaysia needs 9 GW more gas power by 2032 to meet demand.
- Coal plants will be retired by 2044, with gas reserves leveraged.
Data centers are significantly increasing their power consumption in Malaysia, reaching a peak of 9.3% in the second week of August. This figure represents a notable rise from the year's average of 7%. Energy Commission CEO Siti Safinah Salleh attributed this surge to increased energy required for cooling systems during hotter weather, which has also depleted hydro dam levels.
Projections indicate that data centers could account for up to 31% of peninsular Malaysia's power demand by 2035. To accommodate this growing demand and a planned phase-out of coal-fired power plants by 2044, Malaysia aims to augment its gas-fired capacity by 9 gigawatts by 2032. This strategic shift leverages the country's domestic gas reserves.
Despite the increased demand and the temporary optimization of the current power fleet due to a lack of new gas-fired capacity online in the immediate years, experts predict no power shortages in the near future. Demand surges are reported to be within grid planning parameters and are expected to continue predictably.
