Malaysia is set to significantly increase its gas-fired power generation capacity by 6-8 gigawatts by 2030, driven largely by the surging electricity demand from data centers. This demand is expected to triple in share within five years, leading to anticipations that the country may start importing liquefied natural gas in the coming years. The transition away from coal focuses on natural gas as the next optimal energy source. Furthermore, Malaysia plans to enhance its renewable energy capacity alongside expanding gas generation, addressing the double challenge of growing power needs and reducing coal dependency.
"We want to phase out coal responsibly. Then the next best option that can basically take the place of coal is gas," he told Reuters on the sidelines of the Energy Asia event.
The country is expected to see the fastest surge in data centre power demand in Southeast Asia, with its share of electricity consumed by data centres in the region to triple to 21% by 2027 from 7% in 2022.
In the last two years, Malaysia has turned to its coal-fired power plants to address surging demand which grew at the fastest pace in 14 years in 2024.
Rising gas demand could see Malaysia, the fifth-largest exporter of liquefied natural gas, start importing the super-chilled fuel in four to five years, the head of state energy firm Petronas told the Energy Asia conference.
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