KUALA LUMPUR: Data centre projects in Malaysia secured approval for 12.3 gigawatts (GW) of electricity supply capacity as of August, with maximum demand from the sector projected to reach 8.39GW by 2030, says Datuk Seri Fadillah Yusof.
The Deputy Prime Minister, in his capacity as Energy Transition and Water Transformation Minister, said the government will expand generation capacity and strengthen grid infrastructure in phases to support the industry’s growth.
This will not affect the stability and reliability of the national electricity supply, he added.
Syerleena Abdul Rashid (PH-Bukit Bendera) had asked about approved water and electricity capacity for data centre projects, demand projections up to 2030, and safeguards for domestic users.
In a written parliamentary reply, Fadillah said the government would ensure that additional costs arising from data centres' large utilities demand were not unfairly passed on to other consumers.
This would be done under the principle of cost causation, where parties responsible for additional system requirements or costs must bear the related expenses fairly, he added.
Among the measures to ensure this is the Ultra-High Voltage tariff, which has been in force since July 1 last year, for new and existing data centres receiving supply at high-voltage levels above 50 kilovolts (kV) up to 230kV, and extra-high-voltage levels above 230kV.
The government has also increased the Connected Load Charge, a penalty mechanism aimed at preventing data centres from applying for electricity capacity above their actual needs.
This would help ensure that approved capacity is used efficiently and in line with supply planning, Fadillah said.
Data centres must also use at least 30% renewable energy based on their total demand capacity, which can be met through the Corporate Renewable Energy Supply Scheme and the Solar for Self-Consumption initiative.
The industry is also encouraged to develop self-generation facilities to reduce dependence on the National Grid, while the Energy Commission is preparing a framework and guidelines for such facilities for data centres and other industries, Fadillah added.
On water supply, he said data centre projects in Selangor, Johor and Negri Sembilan had approved use of a combined 445.04 million litres a day between last year and 2030.
Of this, 63.90 million litres a day had been approved for data centres already in operation as of June, representing 14.36% of the total approved demand, he said.
Every proposed data centre development is assessed by the Data Centre Task Force, taking into account available water resources, water supply system capacity and the needs of existing users, Fadillah added.
Projects that could affect water supply reserve margins would have to address the required capacity before proceeding, he said.
The National Water Services Commission (SPAN) has also issued guidelines requiring data centres to improve efficiency and use alternative sources for cooling where possible, Fadillah said.
Data centres are charged a separate water tariff of between RM5.30 and RM5.38 per cubic metre in Peninsular Malaysia and Labuan, effective Aug 1 last year.
Any adjustment to water or electricity tariffs would be assessed based on the actual cost of providing services, affordability and national economic interests, Fadillah added.
