Malaysia’s data centres using only half of approved power, water capacity, says minister

KUALA LUMPUR (June 25): Data centres in Malaysia are currently using only about half of the electricity and water capacity approved for them, Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof said.

As of April 2026, actual electricity consumption by data centres stood at 1,102 megawatts (MW), compared with the maximum approved demand of 2,050 MW, representing about 54% of approved capacity.

Meanwhile, actual water usage reported to the National Water Services Commission (SPAN) as of January 2026 stood at 28.68 million litres per day (MLD).

"This is equivalent to 51.4% of the 55.83 MLD approved demand for operational data centres," he said in a written parliamentary reply on Wednesday (June 24).

Fadillah said the government has put in place measures to ensure the rapid growth of data centres does not affect water and electricity supplies for existing consumers.

He said all proposed data centre projects must undergo comprehensive technical assessments through the Data Centre Task Force (DCTF), which comprises relevant ministries and agencies tasked with ensuring that developments are properly planned and are sustainable.

As part of the approval process, water availability is assessed by state water operators and coordinated by SPAN before being tabled to the DCTF to ensure existing users and planned developments are not adversely affected.

Fadillah added that SPAN has also issued guidelines on water supply requirements for data centre developments, covering the planning, application and operational stages.

On electricity supply, he said proposed projects are evaluated based on the capacity of the existing power supply system and grid network to ensure sufficient capacity can be provided without compromising supply reliability for domestic, commercial and industrial users.

"As such, all proposed projects must undergo comprehensive technical assessments by the relevant agencies before any approval is granted," he said.

..........

Read about emerging trends, data-backed insights, growing subsectors, and expert commentaries in EdgeProp print. Subscribe now for your free copy!