As billions of ringgit flow into Malaysia ' s rapidly expanding data centre industry, the question is no longer whether the country can attract investments. The question is whether the nation can generate, transmit and deliver enough electricity to

Hasmarizal Hassan

support one of the most energy-intensive industries ever created.

The answer, according to Tenaga Nasional Berhad( TNB), lies in an ambitious RM43 billion grid modernisation programme that is quietly reshaping Malaysia ' s energy landscape.

Speaking at the Datacentre and Cloud Infrastructure Expo 2026, TNB Chief Grid Officer Hasmarizal Hassan outlined how the national utility is preparing for unprecedented electricity demand from hyperscale data centres and artificial intelligence infrastructure.

For Malaysia, the stakes could hardly be higher.

THE NEW POWER RACE

For decades, Malaysia ' s electricity demand was largely driven by manufacturing, commercial buildings and residential growth.

Today, a new class of customers is emerging.

Data centres, once viewed as niche infrastructure, are becoming major electricity consumers capable of drawing power equivalent to entire towns.

According to government-approved investment records, Malaysia approved 143 data centre projects worth nearly RM144.4 billion between 2021 and mid-2025. Johor has emerged as the epicentre of this boom, attracting global technology giants seeking strategic locations outside Singapore.

Artificial intelligence is accelerating the trend further.

Research suggests electricity demand from data centres could rise by 70-90 per cent in 2025 and 2026 as new facilities come online.

Some projections estimate that Malaysia ' s data centre power consumption could exceed 5,000 megawatts by 2035— roughly 40 per cent of Peninsular Malaysia ' s current generation capacity.

The implications extend far beyond the technology sector.

The future competitiveness of Malaysia ' s digital economy may ultimately depend on the strength and resilience of its electricity infrastructure.

THE RM43 BILLION RESPONSE

Recognising the scale of the challenge, TNB has embarked on a RM43 billion grid modernisation programme designed to strengthen transmission networks, improve reliability and support future growth.

Hasmarizal said future demand from data centres has already been incorporated into broader national generation planning.

" The energy requirements of future data centres are not being viewed in isolation. They have already been incorporated into broader national generation planning to ensure long-term system readiness," he said.

" Our responsibility is to ensure that electricity infrastructure remains ahead of