General 13/10/2026 12:55 PM

Government Assessing Actual Electricity, Water Needs Of Data Centres

BERNAMA Malaysian National News Agency
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Government Assessing Actual Electricity, Water Needs Of Data Centres
Timbalan Menteri Peralihan Tenaga dan Transformasi Air Datuk Seri Abdul Rahman Mohamad

KUALA LUMPUR, Oct 13 (Bernama) --  The government, through the Ministry of Energy Transition and Water Transformation (PETRA), is assessing the actual electricity and water supply requirements of data centres.

Deputy Minister Datuk Seri Abdul Rahman Mohamad said the Energy Commission (ST) is studying the actual electricity requirements of data centres, as the capacity requested is higher than their actual consumption.

“We know that data centres request more capacity, but their actual consumption is lower,” he said during the question-and-answer session in the Dewan Rakyat today.

He was responding to a question from Datuk Seri Tuan Ibrahim Tuan Man (PN-Kubang Kerian) on the total capacity of new clean electricity generation expected to come onstream by 2030, as well as the capacity already contracted through electricity supply agreements with data centres.

He said assessments of data centre investments must consider their benefits to the country and the people, in addition to the substantial investment they bring in. “The government agrees on the need for data centres related to artificial intelligence (AI). However, assessments must also take into account the types of data handled, the benefits to the people, and electricity and water consumption,” he added.

Replying to a supplementary question from Azli Yusof (PH-Shah Alam) on energy supply to support data centre investments, he said electricity demand was high, particularly in the southern part of Peninsular Malaysia.

“Data centre operators may consider options to provide their own electricity supply, including through solar energy or battery storage systems. However, licensing matters fall under the jurisdiction of the ST, and assessments must take into account the interests of both investors and the country,” he added.

-- BERNAMA