Malaysia’s gas-guzzling data centre boom clashes with its clean energy goals
Malaysia has staked its economic future on becoming Southeast Asia’s data-centre capital. It has also promised to slash fossil fuel use by 2050. Right now, those two ambitions are pulling in opposite directions – and gas is winning. There were 54 operational data centres across Malaysia by the end of 2024, with that number expected to rise to 81 by 2035, government minister Akmal Nasrullah Mohd Nasir told parliament last year. In the handful of years from 2021 and mid-2025, s
Malaysia is experiencing a significant boom in data center construction, aiming to become a regional hub for the industry. This growth, however, is creating tension with the nation's commitment to reducing fossil fuel consumption by 2050. The increasing demand for electricity from these energy-intensive facilities is currently being met largely by natural gas, a fossil fuel.
The expansion of data centers poses a challenge to Malaysia's climate targets, highlighting the difficulty of balancing economic development with environmental sustainability.
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