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Malaysia's data centre expansion to 81 by 2035 challenges clean energy goals

Malaysia's Minister Akmal Nasrullah Mohd Nasir revealed plans for 54 operational data centres by end of 2024, with expectations to hit 81 by 2035. This expansion is fueling a 50.5 percent year-on-year increase in gas-fired power generation, sparking worries about the country's clean energy objectives.

BRIC Team
BRIC Team
Jun 7, 2026 · 1 min read · 4 views
Malaysia's data centre expansion to 81 by 2035 challenges clean energy goals

Key Takeaways

  • By the end of 2024, Malaysia is set to have 54 operational data centres, rising to 81 by 2035, according to Minister Akmal Nasrullah Mohd Nasir.
  • From 2021 to mid-2025, Malaysia approved approximately 144.4 billion ringgit (US$36.3 billion) for data centres and cloud computing investments.
  • In April, gas-fired power generation in Malaysia surged by 50.5 percent year-on-year, reaching a record 5.54 terawatt-hours.
  • Gas-fired turbines now account for about 80 percent of Malaysia’s electricity demand, which rose by 11.5 percent during the same period.
  • The challenge for Malaysia lies in balancing its data centre growth with its commitment to reduce fossil fuel reliance by 2050.

Malaysia's push to be Southeast Asia's data-centre hub is clashing with its clean energy goals. By end of 2024, 54 data centres expected to be operational. Rising to 81 by 2035,says government minister Akmal Nasrullah Mohd Nasir. This boom in data sites comes as nation pledges to cut fossil fuel reliance by 2050 .

Between 2021 and mid-2025, Malaysian Investment Development Authority okayed around 144.4 billion ringgit (US$36.3 billion) for data centres,cloud computing. Big names like Microsoft, Google, Amazon Web Services are fueling this growth. But energy needs of these facilities are huge, needing constant power,cooling to stay optimal .

Gas-fired turbines' role is increasing. In April,gas-fired power rose 50.5 percent year-on-year,hitting record 5.54 terawatt-hours. Fastest rise in eight years,meeting about 80 percent of electricity demand,saw an 11.5 percent hike in consumption at same time. Blame expansion of data centres,electrification,climate pressures,electric vehicle adoption.

As Malaysia chases its data centre dreams,question remains: how to balance economic growth with environmental sustainability…

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