KUALA LUMPUR, Feb 27 — The Energy Transition and Water Transformation Ministry (Petra) is projecting data centre electricity demand to reach 12.9GW by 2030, and rising to 20.9GW by 2040.Minister Datuk Seri Fadillah Yusof said that with this in mind, the Electricity Supply and Tariff Development, Implementation and Committee (JPPPET) has approved the Peninsular Generation Development Plan (Power Development Plan – PDP) projection for 2024 to 2050, encompassing the development of new gas-based generation capacity and an increase in renewable energy to meet demand.“In addition, several existing power plants have been identified for phased operational extensions from 2025 to 2029, with additional new generation capacity in 2026 and 2027 using rapid generation concepts such as co-generation, open cycle gas turbines (OCGT) and other suitable technologies,” he said in a written reply to Langkawi MP, Datuk Mohd Suhaimi Abdullah.Mohd Suhaimi had asked about electricity and water requirements for operating all data centres in Malaysia, and to what extent Malaysia is prepared to meet these for the operation of data centres here.Fadillah said that the government is committed to meeting the requirements to support the growth of the data centre industry in the country, particularly in ensuring that the nation’s water supply and electrical energy resources can be supplied adequately, sustainably, and at rates that users can afford.“At the same time, the ministry is continuing renewable energy (RE) programmes such as Self Consumption (SelCo), New Enhanced Despatch Arrangement (NEDA), Corporate Green Power Programme (CGPP) and the Corporate Renewable Energy Supply Scheme (CRESS) to increase generation and data centre access to green energy supplies. All these initiatives will further increase electricity generation capacity, including from RE sources, to accommodate the demand for electricity supply from data centres,” he added.Fadillah said that his ministry, through the National Water Services Commission (SPAN), is also studying special water tariffs and mechanisms for sharing capital expenditure for water infrastructure by data centres, to improve water usage efficiency.He said this was to also ensure that the interests of domestic users and local residents are not affected.He said that penalty mechanisms such as the connected load charge (CLC) are also being studied for when water usage in data centres does not reach the maximum requirements as approved in applications. This is because water operators would still have to bear expenses for the construction of water treatment plants and installation of new pipes, regardless of actual consumption.“State governments are advised to examine the requirements so that data centres are zoned, use district cooling systems, and prioritise the use of recycled water. Additionally, Petra, through SPAN, is preparing a technical guideline to be used by local authorities, before approving planning permissions related to data centre development.“These measures will help efforts to formulate new policies and improve existing guidelines in water conservation and efficiency efforts,” he added.However, Fadillah advised state governments to ensure the adequacy of raw water sources before any data centre development approval is granted, especially in high-demand areas.