Electricity consumption in Peninsular Malaysia is expected to rise 4.9% in 2027 as rapid data centre expansion drives demand, according to the government’s Economic Outlook Report 2027.
State-owned utility Tenaga Nasional Berhad (TNB) projects electricity consumption to reach 148.66 terawatt hours (TWh) next year, up from 141.87 TWh in 2026.
The report said data centres were among the clearest drivers of Malaysia’s rising electricity needs, reflecting the substantial investments attracted to the sector.
Actual electricity consumption by data centres reached 710 megawatts (MW) in 2025, up from 405 MW in 2024.
Citing the Energy Transition and Water Transformation Ministry, the report projects electricity demand from data centres could reach 12.9 gigawatts (GW) by 2030 and 20.9 GW by 2040.
Malaysia has emerged as Southeast Asia’s fastest-growing data centre hub, attracting billions of dollars in investment from global technology companies including Amazon, Google and Microsoft.
The government said continued investment in electricity generation, transmission networks and grid infrastructure would be necessary to meet rising domestic demand while maintaining a reliable and secure power supply.
It added that Malaysia would need to expand its electricity grid and increase renewable energy availability to manage the growth in demand.
The country is targeting renewable energy to account for 40% of installed power capacity by 2035 and 70% by 2050.
