Malaysia faces 9 GW gas-fired capacity gap by 2032

  • Malaysia must expand gas-fired power capacity to support rising electricity demand.
  • Data centres consumed 9.3% of national power in August's second week.
  • Malaysia plans to retire its final coal-fired plant by 2044.

Malaysia will need to add 9 GW of gas-fired power capacity by 2032 to meet rising electricity demand from data centres and replace coal generation, officials said. Data centres accounted for a record 9.3% of overall power consumption in the second week of August, up from this year's 7% average, as higher temperatures increased cooling needs. Malaysia, described as the region's fastest-growing data centre hub, is attracting billions of dollars from global technology companies including Amazon and Microsoft. With no new gas-fired capacity expected this year or next, the Energy Commission plans to optimise the existing fleet through the end of 2027. The country aims to retire its last coal-fired power plant by 2044, while low hydro-dam levels have also contributed to higher power use during the hot weather.

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