Malaysian businesses are gearing up for a significant spike in electricity demand, with a new report from EY highlighting that 91% of companies expect their power consumption to rise by 2028.
This surge is largely driven by the accelerating pace of electrification across industries, coupled with the growing integration of artificial intelligence (AI) technologies that demand substantial energy resources.
Electrification and AI: Dual Drivers of Energy Demand
The push towards electrification is not new in Malaysia, as the nation has been transitioning from traditional energy sources to cleaner, more sustainable alternatives over the past decade.
Historically, Malaysia's industrial sector has relied heavily on fossil fuels, but recent government policies and global sustainability goals have spurred investments in renewable energy and electric infrastructure.
The rise of AI, particularly in sectors like manufacturing and technology, has added another layer of complexity, with data centers and automated systems requiring unprecedented power levels.
Economic and Environmental Impacts
This expected demand surge could strain Malaysia’s current energy grid, raising concerns about potential shortages and the need for rapid infrastructure upgrades.
On the economic front, businesses may face higher operational costs due to increased electricity tariffs, which could impact profit margins if not managed effectively.
Environmentally, the challenge lies in balancing this demand with Malaysia’s net-zero ambitions, pushing for more solar, wind, and battery energy storage systems (BESS) as reported by sources like SolarQuarter.
Looking Ahead: Challenges and Opportunities
Looking to the future, analysts predict that Malaysia’s energy transition will maintain momentum into 2026 and beyond, supported by strong policy frameworks aimed at sustainability.
However, the risk of supply-demand imbalances looms large, requiring collaborative efforts between the government, businesses, and energy providers to ensure grid stability.
The coming years will be critical as Malaysia navigates this energy transformation, with innovations in smart grids and energy efficiency likely to play a pivotal role.
Alfred Lee
