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Data Centres: Boom and Backlash
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9.3% of Malaysia's power, in one week

2 min read
13:06UTC

Malaysian data centres took 9.3% of national electricity in the second week of August, against a 7% average for the year, the Energy Commission's chief executive said.

IndustryDeveloping
Key takeaway

Malaysia's data-centre share of national power moves with the weather, peaking at 9.3% in August.

Malaysian data centres reached 9.3% of national electricity consumption in the second week of August, against a 7% average for the year to date, the Energy Commission's chief executive Siti Safinah Salleh said in a report published on 8 September 1. The regulator attributes the jump to hotter weather lifting cooling load.

The Energy Commission regulates Malaysia's electricity supply industry and publishes the national consumption figures, so this is a measurement rather than a forecast. A share that moves with the weather behaves nothing like the flat draw grid planners were sold. It means the reserve margin, the spare generation held above expected demand, has to cover data-centre cooling in the same hot week as everyone else's air conditioning.

Johor carries most of that load, on an outside estimate rather than a regulator's count. Wood Mackenzie put the state's data-centre maximum demand at about 3.8 GW, roughly 1.5 times Johor's own current electricity demand, and at about 51% of peninsular Malaysia's total data-centre maximum demand, in a report published on 18 June, before this window opened 2. Those two figures are the consultancy's estimates and not the Commission's measurements, and they cannot be quoted under the regulator's name.

The Commission's own projections run further out, with data centres taking 31% of peninsular demand by 2035 and Malaysia needing about 9 GW of new gas-fired capacity by 2032 3. Operators in Johor have chosen to argue their resource case on water: ZDATA said in July that its facility there runs solely on treated wastewater . The electricity number is the one the regulator has now written into the national accounts, where it can be tracked week by week whether the industry engages with it or not.

Deep Analysis

In plain English

Data centres use roughly the same amount of electricity all the time, but hotter weather makes the whole country use more power for air conditioning, and also makes the data centres themselves work harder to keep their own equipment cool. That is why their share of the national total jumped in the second week of August, when it was especially hot.

Deep Analysis
Root Causes

Data centres run a near-constant electrical load year round, while air-conditioning-driven household and commercial demand swings sharply with temperature.

When a heatwave lifts overall grid demand, data-centre consumption stays flat in absolute terms, so its share of the total falls when other demand spikes, and rises when cooling load pushes the whole system's demand curve up in a way that also makes the data centres themselves draw more power for their own cooling. Malaysia's 9.3% weekly peak reflects both effects moving together.

First Reported In

Update #14 · Brazil bill ties tax break to a water cap

Bernama via Yahoo Finance Canada· 8 Sept 2026
Read original
Causes and effects
This Event
9.3% of Malaysia's power, in one week
A national regulator now reports data-centre consumption as a share of the country's power, and that share climbs when the weather turns hot.
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