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Data Centre Power Demand Set to Surge to 8.39GW by 2030

Peak electricity consumption from Peninsular Malaysia's data centre sector is forecast to nearly double within the next six years, with Johor emerging as the primary growth hub for the industry.

LSN Malaysia · 20 October 2026

Data Centre Power Demand Set to Surge to 8.39GW by 2030

KUALA LUMPUR — Data centre operators across Peninsular Malaysia face mounting pressure to secure adequate power supplies as industry projections show peak electricity demand climbing to 8.39 gigawatts by 2030, nearly double current levels.

Johor state is positioned to capture the lion's share of this expansion, reflecting the southern region's strategic advantages as a digital infrastructure hub. The surge underscores Malaysia's growing prominence in the regional data centre market, driven by rising demand for cloud computing, artificial intelligence applications, and digital services across Southeast Asia.

The projected growth trajectory reflects broader trends reshaping Malaysia's technology landscape. Major technology firms and regional operators are increasingly establishing facilities within the country, capitalising on competitive energy costs, strategic geographic positioning, and government support for digital infrastructure development.

Power availability remains a critical factor for data centre viability. The sector's appetite for reliable, high-capacity electricity supply has prompted utilities and policymakers to examine grid expansion plans and renewable energy integration to meet anticipated demand. Industry stakeholders emphasise the need for coordinated planning between energy providers and data centre operators to ensure seamless capacity growth.