National grids can still supply enough power for data centres, says PM

The prime minister said a projection by the energy transition and water transformation ministry (Petra) showed that the grids were still capable of meeting the operational needs of data centres approved in the last two years.

He said other efforts were also underway to ensure enough energy for the country, such as the ongoing Asean Power Grid interconnection projects spanning from Vietnam to Singapore.

“There are also plans to obtain electricity from Sarawak to the peninsula and Singapore, which could fulfil long-term (electricity) needs, God willing,” he said in the lower house.

He was responding to a supplementary question by Che Zulkifly Jusoh (PN-Besut) on how the government ensured that investments in data centres do not strain the nation’s electricity supply, thereby leading to higher electricity tariffs.

The opposition MP cited data centre operations in the US, which consumed about 4.4% of the country’s total electricity in 2023.

In his response, Anwar acknowledged that Malaysia’s data centres required significant water and electricity. He said the government had therefore limited the entry of new non-AI related data centres for the past couple of years.

The prime minister also said the Artificial Intelligence (AI) Governance Bill, still in the early drafting stages, would not include any provisions on energy efficiency standards.

He said such standards could be established through existing laws or by amending the legislation governing energy sector operators, including Tenaga Nasional Bhd.

The digital ministry is drafting the AI Governance BIll, which is expected to be tabled in Parliament this year, to address increasingly complex technological threats including the misuse of deepfake technology.