Gas power capacity to jump 9GW by 2044

By the Editorial Team · Wednesday, September 9, 2026

Malaysia plans to add around 9 gigawatts of gas-fired power capacity by 2044 to replace coal plants and meet rising electricity demand driven by expanding data centres and adverse weather conditions. This transition reflects the country's commitment to retiring its last coal plant by 2044 while emphasizing energy system reliability, sustainability, and demand management amid growing consumption pressures.

Malaysia plans to add approximately nine gigawatts (GW) of gas-fired power generation capacity by 2044 as part of its strategy to phase out coal-fired power plants, in response to growing electricity demand driven in part by the expanding data centre sector. The government anticipates retiring the country’s last coal power plant by 2044, marking a significant shift in the nation’s energy mix.

Speaking at the Energy Regulatory Insights 2026 event organized by the Energy Commission (EC), Economy Minister Akmal Nasirullah Mohd Nasir outlined the country’s approach to balancing rising electricity needs with environmental and system sustainability. He emphasized that while gas-fired power generation would play a crucial role in maintaining system reliability, managing overall energy demand would become equally important. “The phase-out for coal power plants will be seen by 2044, which will see the country retiring its final coal power plant then,” Akmal Nasirullah stated. “At the same time, we expect about 9GW to be deployed or to be put into the system through our gas power plants.”

The rising electricity demand is partly fueled by data centres, which currently consume around 9.28% of Malaysia's electricity supply, up from approximately 7% earlier in the year. This uptick is linked not only to the sector’s expansion but also to weather conditions, including the ongoing haze and hot temperatures influenced by the El Niño phenomenon. EC chief executive officer Siti Safinah Salleh noted that these factors are contributing to an overall increase in peak electricity demand, which recently surpassed 21GW.

“There are a few data centres that are anticipated to come online or become operational somewhere in November,” Siti Safinah said, adding that electricity consumption growth is not solely driven by data centres but also by weather-related factors.

Currently, there is no regulatory cap on electricity consumption by data centres; approvals are granted based on the grid’s capacity to supply power. Meanwhile, the Corporate Renewable Energy Supply Scheme has seen strong interest from large electricity users seeking renewable options, reflecting a broader trend toward sustainability.

Minister Akmal Nasirullah also highlighted the need for disciplined and ongoing upgrades to both generation capacity and electricity delivery infrastructure over the coming decade to ensure the system remains affordable, safe, and sustainable. He pointed out that environmental conditions, such as haze, may affect energy efficiency and system performance, suggesting that adaptive management will be necessary going forward.

As Malaysia phases out coal and shifts towards greater reliance on gas and renewables, the government’s focus will increasingly include demand management alongside supply expansion to meet the country’s evolving energy needs.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.