Malaysia increases coal-fired power output amid surging energy demand from data centres

Malaysia is increasing coal-fired power generation and importing record levels of coal to meet rapidly growing electricity demand, particularly from the expanding data centre sector, according to Vietnam News Agency (VNA), a partner of TV BRICS.

Although the country remains one of the world's largest exporters of liquefied natural gas, Malaysian authorities have indicated that imports may become necessary due to rising domestic demand and declining gas reserves.

Official data shows that coal-fired power output in Malaysia, where around 80 per cent of national electricity demand is concentrated, rose by nearly 9 per cent in May and June 2025. This increase is three times higher than the overall power demand growth of 3 per cent during the same period.

In the first half of July, coal-fired generation surged by 16.8 per cent year-on-year, while total electricity demand grew by 5.2 per cent, underlining the rising share of coal in the country’s energy mix.

By 2030, the government aims to increase gas-fired power generation capacity by 50 per cent and more than double its renewable energy capacity. These efforts are part of a broader strategy to accommodate the projected rise in electricity consumption from data centres, which are expected to account for 52 per cent of Malaysia’s power demand by the end of the decade, up from just 2 per cent today.

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