Malaysia's data centre boom could unlock up to RM36 billion in renewable energy projects

The Data Centre Task Force in Malaysia has cleared an additional five gigawatts of capacity, roughly 60% of one outlet pipeline, prompting Hong Leong Investment Bank Bhd to project a sizeable opportunity for renewable-energy firms. If new data centres must source at least 30% of their power from green sources, the market could be worth between RM9 billion and RM36 billion, depending on whether the requirement is based on installed capacity or actual consumption.

A one-to-one solar-plus-storage match would need about 2.25 GW of solar and 1,125 MW of battery power, while meeting 30% of energy use would call for roughly 9 GW of solar and 4.5 GW of storage. Existing facilities with signed electricity agreements may be exempt, yet global operators continue to pursue ESG and renewable targets. The Corporate Renewable Energy Supply Scheme (Cress) and a new government package offering a 14-sen/kWh system access charge aim to improve project bankability, with contracts required to run until the end of 2028.