Tenaga Nasional Bhd (TNB) is positioning itself at the centre of Malaysia’s fast-growing data centre industry, with plans to support up to 5,000 megawatts of energy demand by 2035 as the country accelerates its digital ambitions.
Speaking at Singapore International Energy Week (SIEW) 2025, TNB Chief Retail Officer Datuk Kamal Arifin A. Rahman said the utility is preparing long-term solutions that balance expansion with responsibility, in line with the national goal of becoming a regional data centre hub.
TNB currently has 27,690 megawatts of installed capacity, representing 51.4 percent of the market. Its infrastructure includes 26,000 kilometres of transmission lines and a distribution network stretching 734,000 kilometres. Through its retail division, the utility supplies more than 10.4 million customers nationwide and delivers around 138,000 gigawatt hours of electricity annually.
According to Kamal Arifin, the rapid rise of data centre capacity in the region, especially in Malaysia, means industry players can no longer choose between affordability, reliability and sustainability. “The challenge now is how to meet all three at once,” he said.
One of TNB’s key offerings is the Green Lane Pathway, designed to shorten data centre connection timelines from 36 months to 12 months. Combined with a robust dual-supply framework and the integration of renewable energy, the pathway aims to create an efficient and environmentally responsible energy ecosystem for digital infrastructure.
He said this approach supports early operational readiness, faster approvals and comprehensive assistance from TNB’s one-stop centre for all data centre-related needs. “Through initiatives like the Green Lane Pathway and the OSC, TNB is positioning Malaysia strategically as a regional hub for green data centres,” he added.
The utility’s strategy aligns with the National Energy Transition Roadmap (NETR), which outlines a national target of 70 percent renewable energy capacity by 2050. TNB itself has committed to achieving 10 gigawatts of renewable energy by 2030, including 500 megawatts of solar and 2.5 gigawatts of floating solar.
On TNB’s renewable energy plans, Kamal Arifin said progress is being driven through partnerships and government collaboration to expand the Green Electricity Tariff programme in the near term and streamline renewable supply models over the longer term. He noted ongoing cooperation with Princeton Digital Group (PDG), a major regional data centre operator.
“Collaboration between TNB and PDG is mutually reinforcing. We were able to support their operations quickly under the fast Green Lane initiative, providing large-scale and more sustainable data centre capacity in Johor,” he said.
PDG’s Sedenak campus, with 190 megawatts of capacity, operates under an electricity supply agreement with TNB and was connected within 12 months through the Green Lane mechanism. The company is planning further expansion in Kulai with a proposed 200 megawatt site by 2027.
Bernama
