Malaysia anticipates continued growth in electricity demand as rising temperatures increase the need for air conditioning and cooling systems, Economy Minister Akmal Nasrullah Mohd Nasir said. Speaking on Tuesday at the Energy Regulatory Insights 2026 event in Subang Jaya, Akmal highlighted how population growth and the expansion of energy-intensive sectors like data centers have already contributed to a steady upward trend in power consumption.

“Demand for energy is projected to increase consistently,” Akmal stated, emphasizing that climate factors would further influence electricity usage. He noted that warmer weather conditions tend to elevate the reliance on cooling technologies, thereby placing additional pressure on the power grid.

The minister’s remarks followed a recent alert from CIMB Securities forecasting that El Niño weather patterns could exacerbate challenges for Malaysia’s electricity and water systems into 2027. The financial research firm warned that prolonged hot and dry spells linked to El Niño may lead to surges in electricity demand as more cooling is required, while also worsening water shortages.

Malaysia’s electricity infrastructure faces a confluence of factors driving higher consumption: demographic growth, digital economy expansion, and shifting climate patterns. The Ministry of Economy and regulatory agencies have been monitoring these developments closely to ensure appropriate measures are in place to maintain supply reliability and efficiency.

While the country has invested in diversifying its energy mix and enhancing system resilience, the anticipated strain from climate-related demand poses an ongoing challenge for policymakers and utility providers. Efforts to integrate renewable energy sources and improve energy efficiency remain critical components of Malaysia’s approach to managing future electricity needs amid evolving environmental conditions.