TNB powering 36 data centres as of Q1 2026, says Energy Ministry

KUALA LUMPUR, July 7 — Tenaga Nasional Bhd (TNB) has supplied electricity to 36 operating data centres with a planned supply capacity of around 4.5 gigawatts (GW) through the first quarter (1Q) of 2026, according to the Ministry of Energy Transition and Water Transformation (Petra).

The ministry said TNB has also met power demand for 23 data centre projects currently under construction, with a maximum demand capacity of 3.8 GW.

It said that, based on projections from the Electricity Supply Planning and Implementation Committee and Tariffs (JPPPET) No 1/2026, peak demand is expected to increase significantly from 21.3 GW in 2026 to 33.5 GW by 2035, driven by the rapid expansion of data centres and high-tech industries.

“Electricity consumption by the data centre sector alone is expected to contribute up to 31 per cent, or equivalent to 73,274 gigawatt-hours (GWh), of total demand in 2035 compared to only seven per cent this year,” the ministry said in a written answer dated July 6, 2026, published on the Parliament website.

The ministry was replying to a question from Onn Abu Bakar (PH-Batu Pahat) on TNB’s current position on electricity supply for the next 10 years, including the requirements of data centres, high-tech (technology) industries and the transition to green energy, as well as proposed upgrades to the national grid.

In the context of the country’s green energy transition, PETRA said the government remains committed to ensuring that the country’s electricity supply capacity mix is ​​optimised through the use of 70 per cent clean energy sources, which includes 58 per cent renewable energy (RE), 10 per cent hydrogen, and two per cent nuclear by 2050 as decided by JPPPET Meeting No 1/2026.

To support the greater integration of RE into the country’s electricity supply system, the government has approved a total capital expenditure allocation of RM43 billion to TNB under the Incentive-Based Regulation (IBR) framework for the fourth regulatory period (RP4) for the implementation phase from 2025-2027. — Bernama