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KUALA LUMPUR, Oct 28 — Deputy Prime Minister Datuk Seri Fadillah Yusof announced that the Energy Commission is developing a framework and guidelines for self-generation facilities and renewable energy usage in the data centre sector, in line with the government's mandate for a 30 per cent renewable energy requirement. Fadillah explained that data centres should develop self-generated solar energy to reduce reliance on the national grid and prevent rising electricity costs for other consumers.

Backup generators should be installed to manage demand and alleviate grid pressure during critical periods. Data centres are encouraged to join the Corporate Renewable Energy Supply Scheme for green energy procurement. Each electricity supply application undergoes a technical assessment by the Energy Focus Group, considering system capacity, transmission and distribution networks, and infrastructure investment requirements.

As of August 2026, data centres contracted electricity demand was 2,346 megawatts, while actual consumption was 1,374 MW or 58.5 per cent. The government is still evaluating the use of nuclear energy as an energy source while prioritizing national preparedness, compliance with international standards, workforce capacity, and technological suitability.