KUALA LUMPUR, 28 October 2026 – The Energy Commission (ST) is developing a comprehensive framework and guidelines to regulate self-generation facilities and the use of renewable energy in Malaysia’s data centre sector, Deputy Prime Minister Datuk Seri Fadillah Yusof said.

The initiative supports the government’s requirement for data centres to obtain at least 30 per cent of their energy from renewable sources, as part of efforts to promote sustainable energy consumption.

Fadillah said data centre operators were also encouraged to invest in their own energy-generation facilities, particularly solar power systems, to meet their electricity needs and help prevent rising electricity supply costs for other consumers.

He explained that greater reliance on self-generated energy would reduce the sector’s dependence on electricity supplied through the national grid.

In addition, data centres would need to be equipped with backup generators that could be deployed to manage electricity demand, especially during critical periods when the national grid’s operating reserves were low.

The measures are intended to ease pressure on the national electricity system while supporting the growing energy requirements of Malaysia’s data centre industry.

Fadillah made the remarks during a question-and-answer session in the Dewan Rakyat on 28 October.

Source: BERNAMA, 28 October 2026.