[SMM PV Flash] Malaysia Tightens Power Rules for Data Centres

Published: Oct 16, 2026 10:12 (GMT+8)

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Malaysia has tightened investment and electricity requirements for data centres. Minister of Investment, Trade and Industry Mr. Johari Ghani said data centres will be placed under a separate electricity tariff category and charged at market rates. Operators will also be required to pay for their full reserved power capacity even if actual consumption is lower. Investors must bear the cost of required TNB transmission upgrades, adopt water recycling technology and source at least 3% of specified services locally. The measures could raise power and infrastructure costs for large-load projects while increasing the importance of renewable power procurement, grid access and energy management.

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