@Green May/June 2026 | Page 10

COVER STORY

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COVER STORY

@ green | May-June. 2026
weather conditions and expanding data centre operations.
To meet rising demand, gas-fired generation has increased significantly while coal ' s share of the energy mix has declined.
" The growth we are seeing today is unlike anything experienced previously. Demand is being driven by a combination of digitalisation, electrification and emerging technologies," said Hasmarizal.
" This requires a more intelligent grid, stronger transmission networks and greater operational flexibility."
Analysts expect power demand to continue growing by approximately four per cent annually over the coming years, largely due to data centres currently under construction.
Data centres are increasingly replacing traditional industrial users as the primary source of baseload electricity demand, representing one of the most significant shifts in Malaysia ' s energy consumption patterns since industrialisation.
THE NEXT DECADE
Hasmarizal Hassan. Photo credit TNB
climate commitments.
The National Energy Transition Roadmap( NETR) envisions renewable energy contributing 70 per cent of installed capacity by 2050 while supporting the country ' s net-zero ambitions.
However, data centre growth is placing increasing pressure on the system today.
A recent analysis showed data centres already account for around three per cent of electricity consumption on Peninsular Malaysia ' s grid— triple the level recorded just a year earlier.
Meeting future demand will require not only additional generation capacity but also substantial deployment of renewable energy.
Hasmarizal stressed that future competitiveness would depend not only on power availability but also on the ability to supply cleaner energy.
" Many international technology companies have ambitious sustainability targets. They are looking beyond reliability and cost. They also want access to credible renewable
“ The faster we can connect strategic projects, the stronger Malaysia ' s position becomes as a regional digital hub."
- Hasmarizal
Hassan
energy solutions," he said.
" Our role is to support that transition by integrating more renewable energy into the grid while maintaining system stability."
TNB has intensified investments in renewable integration and grid digitalisation, including a 785MW Corporate Renewable Energy Supply Scheme( CRESS) agreement to supply green electricity to data centre operations.
International technology companies are increasingly demanding renewable-powered operations as part of their global sustainability commitments.
The future winners in the data centre race may therefore be jurisdictions capable of delivering both reliable electricity and credible green energy solutions.
A NEW ENERGY REALITY
Malaysia is already experiencing the consequences of this transformation.
Electricity demand reached record levels in 2026, driven by a combination of extreme
The arrival of hyperscale computing, cloud services and artificial intelligence is creating opportunities that previous generations could scarcely imagine.
Malaysia is well-positioned to capture a significant share of that growth. The country possesses political stability, competitive operating costs, strategic connectivity and a growing digital ecosystem.
Yet none of these advantages will matter if electricity infrastructure becomes a bottleneck.
That is why TNB ' s RM43 billion investment programme may ultimately prove to be one of the most important economic initiatives currently underway.
The grid has traditionally been viewed as invisible infrastructure— essential but rarely discussed.
Today, it sits at the centre of Malaysia ' s digital future.
Looking ahead, Hasmarizal believes Malaysia is well-positioned to capitalise on the next wave of digital investments, provided that infrastructure development keeps pace with demand.
" The grid is no longer just supporting economic growth. It is enabling it," he said.
" As Malaysia advances its digital ambitions, electricity infrastructure will become an increasingly important competitive advantage. Our focus is to ensure the grid remains ready for whatever comes next."
The AI revolution may be built on algorithms, chips and cloud computing, but its foundation remains remarkably simple: electricity.
Every prompt, every transaction and every digital service ultimately depends on a reliable flow of power.
Malaysia ' s RM43 billion grid transformation is therefore about far more than transmission lines and substations. It is an investment in the country ' s ability to compete in the defining technological race of the 21st century.
The data centres are arriving. The question now is whether the grid can stay one step ahead. – @ green