Malaysia eyes RM176 billion power spend to power data-centre expansion

A note from CIMB Securities projects that Malaysia must secure about RM176 billion in power investment over the next decade to realise its goal of becoming a regional data-centre hub. The firm forecasts the addition of 24 GW of solar and up to 15 GW of gas-fired generation between 2026 and 2035, driven by an anticipated 600 % surge in data-centre electricity demand, which could account for 31 % of Peninsular Malaysia’s load by 2035.

To meet climate objectives, the country plans to raise renewable energy’s share to 22 % and increase gas’s share to 59 % while reducing coal to 10 %. Solar development would require roughly RM93 billion, benefitting Solarvest Holdings, Samaiden Group and Kee Ming Group, while gas capacity could need up to RM83 billion, with Tenaga Nasional, YTL Power and Malakoff likely participants. The transition also calls for extensive transmission upgrades, high-voltage lines, substations and utility-scale battery storage, and a new tariff framework will charge data-centre operators 33 % above the base rate and make them fund grid-strengthening costs.