Summary
  • Data centres required to source at least 30% renewable energy.
  • Government encourages on-site solar power generation.
  • Electricity demand from data centres projected to reach 31% by 2035.

KUALA LUMPUR, October 28 — Malaysia has approved a requirement for data centres to use at least 30% renewable energy as part of its national energy transition strategy.

The Energy Commission is developing guidelines covering renewable energy requirements and on-site electricity generation, including solar installations.

Authorities will also assess new data centre electricity applications to ensure sufficient grid capacity and reliable power supply.

Data centres currently account for nearly 10% of Malaysia’s electricity consumption, with demand projected to reach 31% by 2035.

The initiative aims to reduce dependence on conventional energy sources while supporting sustainable digital infrastructure development.

The government stressed that grid stability and uninterrupted electricity supply remain priorities as data centre investments expand nationwide.