KUALA LUMPUR: Data centres in Malaysia are using just 58.5% of their contracted electricity demand as at August, with actual consumption standing at 1,374 megawatts (MW) against a contracted 2,346MW, says Deputy Prime Minister Datuk Seri Fadillah Yusof.
The Energy Transition and Water Transformation Minister said the gap reflected how data centre operators initially requested more electricity than they eventually needed, prompting the government to assess their actual demand and consumption more closely.
He said the Data Centre Task Force (DCTF) had been established to scrutinise the industry’s electricity requirements and determine actual consumption.
“That is why we are taking a comprehensive approach. The DCTF was established to assess in detail the extent of actual demand and consumption.
“Sometimes, at the initial stage, when they apply for an electricity supply contract, they estimate how much power they will need, but their actual consumption turns out to be lower than the amount requested,” he said during the question and answer session in the Dewan Rakyat on Wednesday (Oct 28).
He was responding to Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang), who asked about the government’s contingency plans to ensure data centre operations did not affect the public’s access to electricity and water during droughts or cause supply disruptions.
Fadillah added that every electricity supply application for a data centre development underwent a comprehensive technical assessment by the Energy Focus Group (EFG), managed by the Energy Commission (EC), before being referred to the DCTF.
The assessment took into account the system’s ability to supply electricity to data centres in line with projections approved by the National Energy Council, he said.
“It also considers the electricity transmission and distribution networks, as well as the infrastructure investment required.
“As such, the EC is developing a comprehensive framework and guidelines for data centres to generate their own electricity and meet the requirement to use at least 30% renewable energy.
“The government will continue to monitor the growth of the data centre industry, conduct risk assessments and implement appropriate mitigation measures, while regularly updating generation and grid planning based on actual demand trends,” he said.
On water security, Fadillah said the DCTF also considered water reserve margins when assessing suitable locations, based on feedback and recommendations from state water supply operators.
Data centre projects in areas with low water reserve margins would not be considered for development, he said.
Responding to a supplementary question from Wan Ahmad Fayhsal on whether Malaysia would consider following Indonesia’s reported move involving floating nuclear power plants, Fadillah said nuclear energy remained under consideration as a future source of electricity.
Fadillah said Malaysia, however, would first need to resolve its international treaty obligations before adopting nuclear energy, subject to compliance with International Atomic Energy Agency (IAEA) standards on regulation, safety, manpower capabilities and technology.
“Readiness is more important to us because we want to ensure not only the security of our energy supply but also the safety of our people in every respect,” he said.
