Malaysia to build 50% more gas-fired power capacity to meet data centre demand
The country is expected to see the fastest surge in data centre power demand in South-east Asia, with its share of electricity consumed by data centres in the region to triple to 21 per cent by 2027 from 7 per cent in 2022, a joint report in May by Bain & Co with others including Google and Temasek showed.
Rising gas demand could see Malaysia, the fifth-largest exporter of liquefied natural gas (LNG), start importing the super-chilled fuel in four to five years, the head of state energy firm Petronas told the Energy Asia conference this week.
Megat Jalaluddin, CEO of state utility Tenaga Nasional, said he expects Malaysia to add 6-8 gigawatts of gas-fired power by building new plants and extending the life of existing ones as it looks to cut dependence on coal.
That represents a 40-54 per cent increase from the current 15 GW of gas-fired capacity. Total power consumption in Malaysia is on track to increase 30 per cent by 2030, and Malaysia has already invited industry proposals for supply, he said.
'We want to phase out coal responsibly. Then the next best option that can basically take the place of coal is gas,' he told Reuters on the sidelines of the Energy Asia event.
A NEWSLETTER FOR YOU
Friday, 8.30 am Asean Business
Business insights centering on South-east Asia's fast-growing economies.
Sign Up
Sign Up
Malaysia could also add as much as 10 GW of renewable capacity by 2030, more than doubling the 9 GW currently, as data centres push for access to cleaner sources of power, he said.
In the last two years, Malaysia has turned to its coal-fired power plants to address surging demand which grew at the fastest pace in 14 years in 2024, according to energy think-tank Ember.
Data centres are expected to require 19.5 GW of power generation capacity by 2035, accounting for 52 per cent of Peninsular Malaysia's electricity use, from about 2 per cent now, Deputy Prime Minister Fadillah Yusof told Reuters.
Technology giants including Microsoft, Nvidia, Alphabet's Google and ByteDance have announced billions of dollars in investments in Malaysia since the beginning of last year, powering an infrastructure boom.
Malaysia's southern state of Johor has emerged as South-east Asia's hottest data centre hub due to its proximity to Singapore, relatively cheap land and power and faster approvals, real estate consultancy Knight Frank said in a report. REUTERS
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
2 hours ago
- Straits Times
UN report finds United Nations reports are not widely read
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: UN Secretary-General Antonio Guterres attends a press briefing during the third United Nations Ocean Conference (UNOC3) at the Centre des Expositions conference centre in Nice, France, June 10, 2025. REUTERS/Manon Cruz/File Photo UNITED NATIONS - A United Nations report seeking ways to improve efficiency and cut costs has revealed: U.N. reports are not widely read. U.N. Secretary-General Antonio Guterres briefed countries on Friday on the report, produced by his UN80 reform taskforce that focused on how U.N. staff implement thousands of mandates given to them by bodies like the General Assembly or Security Council. He said last year that the U.N. system supported 27,000 meetings involving 240 bodies, and the U.N. secretariat produced 1,100 reports, a 20% increase since 1990. "The sheer number of meetings and reports is pushing the system – and all of us – to the breaking point," Guterres said. "Many of these reports are not widely read," he said. "The top 5% of reports are downloaded over 5,500 times, while one in five reports receives fewer than 1,000 downloads. And downloading doesn't necessarily mean reading." Guterres launched the UN80 taskforce in March as the U.N. - which turns 80 this year - faces a liquidity crisis for at least the seventh year in a row because not all 193 U.N. member states pay their mandatory regular dues in full or on time. The report issued by the taskforce late on Thursday covers just one of several reform angles being pursued. Top stories Swipe. Select. Stay informed. Tech Reporting suspected advanced cyber attacks will provide a defence framework: Shanmugam Business Singapore's US tariff rate stays at 10%, but the Republic is not out of the woods yet Asia Asia-Pacific economies welcome new US tariff rates, but concerns over extent of full impact remain Business ST explains: How Trump tariffs could affect Singapore SMEs, jobs and markets Asia Indonesia's Mount Lewotobi Laki-laki erupts Singapore Thundery showers expected on most days in first half of August Singapore Synapxe chief executive, MND deputy secretary to become new perm secs on Sept 1 Singapore 5 women face capital charges after they were allegedly found with nearly 27kg of cocaine in S'pore Among the suggestions Guterres put forward on Friday: "Fewer meetings. Fewer reports, but ones that are able to fully meet the requirements of all mandates." REUTERS
Straits Times
2 hours ago
- Straits Times
US, NATO developing novel funding mechanism for Ukraine weapons transfers
FILE PHOTO: Ukrainian service members walk next to a launcher of a Patriot air defence system, amid Russia's attack on Ukraine, in an undisclosed location, Ukraine August 4, 2024. REUTERS/Valentyn Ogirenko/File Photo WASHINGTON - The United States and NATO are working on a novel approach to supply Ukraine with weapons using funds from NATO countries to pay for the purchase or transfer of U.S. arms, according to three sources familiar with the matter. The renewed transatlantic cooperation on Ukraine comes as U.S. President Donald Trump has expressed frustration with Moscow's ongoing attacks on its neighbor. Trump, who initially took a more conciliatory tone toward Russia as he tried to end the more than three-year war in Ukraine, has threatened to start imposing tariffs and other measures if Moscow shows no progress toward ending the conflict by August 8. The president said last month the U.S. would supply weapons to Ukraine, paid for by European allies, but did not indicate how this would be done. NATO countries, Ukraine, and the United States are developing a new mechanism that will focus on getting U.S. weapons to Ukraine from the Priority Ukraine Requirements List, known under the acronym PURL, the sources said. Ukraine would prioritize the weapons it needs in tranches of roughly $500 million, and NATO allies - coordinated by NATO Secretary General Mark Rutte - would then negotiate among themselves who would donate or pay for items on the list. Through this approach, NATO allies hope to provide $10 billion in arms for Ukraine, said a European official, speaking on condition of anonymity. It was unclear over what timeframe they hope to supply the arms. "That is the starting point, and it's an ambitious target that we're working towards. We're currently on that trajectory. We support the ambition. We need that sort of volume," the European official said. Top stories Swipe. Select. Stay informed. Tech Reporting suspected advanced cyber attacks will provide a defence framework: Shanmugam Business Singapore's US tariff rate stays at 10%, but the Republic is not out of the woods yet Asia Asia-Pacific economies welcome new US tariff rates, but concerns over extent of full impact remain Business ST explains: How Trump tariffs could affect Singapore SMEs, jobs and markets Asia Indonesia's Mount Lewotobi Laki-laki erupts Singapore Thundery showers expected on most days in first half of August Singapore Synapxe chief executive, MND deputy secretary to become new perm secs on Sept 1 Singapore 5 women face capital charges after they were allegedly found with nearly 27kg of cocaine in S'pore NATO declined to comment. The White House, Pentagon, and Ukrainian embassy in Washington did not respond to requests for comment. Russian forces are gradually advancing against Ukraine, and control one-fifth of Ukraine's territory. FASTER ARMS RESTOCKING If a NATO country decides to donate weapons to Ukraine, the mechanism would allow that country to effectively bypass lengthy U.S. arms sales procedures to replenish its own stocks, said one U.S. official, speaking on condition of anonymity. But the NATO country would have to pay the U.S. up front for the speedier replenishment. The money would be paid into a U.S.-held account, possibly at the U.S. Treasury Department, or to an escrow fund, although the exact structure remains unclear, the official said. NATO countries also have the option of simply paying the United States to send weapons directly to Ukraine. In that case, the payment could be made via NATO or directly to the U.S. Department of Defense, said a second source, speaking on condition of anonymity. This would be in addition to the United States' own effort to identify arms from U.S. stockpiles to send to Ukraine under the Presidential Drawdown Authority, which allows the U.S. president to draw from current weapons stocks to help allies in an emergency. At least one tranche of weapons for Ukraine is currently being negotiated under the new mechanism, two sources said, though it was unclear if any money has yet been transferred. Trump's fellow Republicans in Congress have introduced legislation, known as the PEACE Act, that aims to create a fund at the U.S. Treasury in which allies can deposit money that would pay to replenish U.S. military equipment donated to Ukraine. Ukraine's needs remain consistent with previous months - air defenses, interceptors, systems, rockets, and artillery. The last statement of need from Ukraine came at the July 21 Ramstein conference led by EU allies, including Britain. REUTERS
Straits Times
2 hours ago
- Straits Times
Rallying-Rovanpera leads the way in home Rally Finland
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: Rallying - World Rally Championship - Safari Rally Kenya - March 20, 2025 - Kalle Rovanpera of Finland and his co-driver Jonne Halttunen of Toyota GR Yaris Rally1 in action during the side-by-side super special racing stage at Kasarani in Nairobi. REUTERS/Monicah Mwangi/File Photo Double world champion Kalle Rovanpera made a solid start to his bid for a first home WRC win in Finland as the Toyota driver ended Friday's opening leg 4.9 seconds clear of Hyundai's Thierry Neuville. A mere 15.7 seconds separated the top five, with Hyundai's Adrien Fourmaux third and 2.8 seconds adrift of his Belgian teammate after 10 of the gravel stages through the Finnish forests. Toyota's Takamoto Katsuta was fourth and Finnish teammate Sami Pajari fifth. Rovanpera had not led a gravel rally this season before Friday but he hit the front after the second stage and was fastest in three of the day's nine stages. "It was a nice day, but not easy by any means. I am not really in my comfort zone at the moment, but we are pushing hard," he said. Both Rovanpera and reigning world champion Neuville agreed the stages had been too fast for comfort. "All flat-out and just taking risks -- not at all what I like," said the Hyundai driver. Top stories Swipe. Select. Stay informed. Tech Reporting suspected advanced cyber attacks will provide a defence framework: Shanmugam Business Singapore's US tariff rate stays at 10%, but the Republic is not out of the woods yet Asia Asia-Pacific economies welcome new US tariff rates, but concerns over extent of full impact remain Business ST explains: How Trump tariffs could affect Singapore SMEs, jobs and markets Asia Indonesia's Mount Lewotobi Laki-laki erupts Singapore Thundery showers expected on most days in first half of August Singapore Synapxe chief executive, MND deputy secretary to become new perm secs on Sept 1 Singapore 5 women face capital charges after they were allegedly found with nearly 27kg of cocaine in S'pore Hyundai's championship leader Ott Tanak hit a tree on the seventh stage and was 10th. Toyota title rival Elfyn Evans, who is a single point behind, was seventh with teammate Sebastien Ogier in sixth. REUTERS
