KUALA LUMPUR: Rising electricity demand, driven partly by the expansion of data centres and other energy-intensive industries, is increasing pressure on Malaysia to strengthen its power infrastructure while advancing its energy transition.
This was among the key issues raised at the opening of the Clean Energy Transition Asia (CETA) 2026 Summit and Exhibition, which brought together industry leaders and policymakers to discuss the region’s energy priorities.
The event was officiated by Energy Transition and Water Transformation Ministry’s sustainable energy division under-secretary Rosmahyuddin Baharuddin.
Also present were key industry leaders, including Tenaga Nasional Bhd (TNB) president and chief executive officer Datuk Seri Shamsul Ahmad, Malakoff Corp Bhd chief executive officer Syahrunizam Samsudin and representatives from Solarvest Holdings Bhd and the Data Centre Industry Association.
Syahrunizam said Malaysia had to expand its electricity system while reducing carbon emissions amid unprecedented growth in power demand.
He said the country recorded two new electricity demand peaks this year, reaching 21.5 gigawatts in April before rising to 22 gigawatts in August.
“Malaysia will have to deliver both objectives concurrently,” he said.
Malakoff plans to double its capacity in both gas and renewable energy over the next 10 years, while continuing to invest in reliable power generation.
The company is also planning at least two new 1,400-megawatt combined-cycle gas turbine plants, alongside its renewable energy and energy storage initiatives.
Meanwhile, Shamsul said Malaysia’s energy ambitions depended on a stronger electricity grid to accommodate rising demand and greater renewable energy integration.
He said about RM43 billion in approved and planned capital expenditure had been allocated for network investments between 2025 and 2027 under Regulatory Period 4.
The investments will support supply reliability, new infrastructure projects and high-growth industries such as data centres, while upgrading the grid for renewable energy integration.
“Malaysia’s energy ambitions can only move as fast as the grid,” he said.
Shamsul also highlighted plans to develop a 500-kilovolt national grid backbone, involving about 500 kilometres of network development targeted for completion by 2030.
TNB is also advancing its first 400-megawatt-hour battery energy storage system project in Peninsular Malaysia to store excess solar energy for use during peak demand.
Rosmahyuddin said Malaysia’s energy transition must balance energy security, affordability and environmental sustainability.
He said renewable energy accounted for nearly 32 per cent of Malaysia’s installed capacity as of mid-2026, representing about 14 gigawatts.
Malaysia is targeting a 35 per cent renewable energy share by 2030 and 70 per cent by 2050.
However, achieving these targets would require sustained investment in power generation, grid infrastructure and energy storage.
Rosmahyuddin also highlighted the importance of regional cooperation through the Asean Power Grid, saying cross-border electricity trade could strengthen energy security and allow countries to tap into complementary energy resources.
He said Malaysia was involved in discussions on the proposed Vietnam-Malaysia-Singapore electricity interconnection, with a capacity of about 1.3 gigawatts, subject to feasibility assessments and regulatory and commercial arrangements.
CETA 2026 brings together policymakers, energy companies, investors and technology providers to discuss renewable energy, grid modernisation, energy storage and regional electricity connectivity.