TNB to benefit from DC-driven power demand

By the Editorial Team · Thursday, October 1, 2026

Tenaga Nasional Bhd (TNB) is set to benefit from rising electricity demand as Malaysia's data centre capacity expands, with 13 gigawatts of potential electric service agreements secured or approved. This growth is prompting major grid upgrades and renewable energy projects, particularly in Johor and other regions, to ensure reliable power supply amid increasing data centre developments through 2030 and beyond.

Tenaga Nasional Bhd (TNB) is poised to benefit from the increasing power demand driven by the expansion of data centres (DCs) in Malaysia, according to research by Hong Leong Investment Bank. The surge in DC capacity is expected to stimulate investments in the power grid and accelerate the integration of renewable energy sources.

As of June 2026, TNB's potential electric service agreements (ESA) totalled 13 gigawatts (GW), consisting of 8.35GW already secured through ESAs and an additional 4.6GW approved by the Data Centre Task Force (DCTF). The growth has been particularly concentrated in Johor, where the clustering of DCs has led to emerging grid bottlenecks. To address these challenges, TNB is prioritizing grid infrastructure upgrades and encouraging data centre developers to explore opportunities in other regions such as the Klang Valley and the East Coast, where power capacity remains more readily available.

TNB's management has also reported increasing interest in mega data centre sites with capacities exceeding 1GW. The DCTF currently manages new DC project approvals by requiring confirmation of anchor tenants or off-takers before TNB executes ESAs. Furthermore, the government is assessing the feasibility of incorporating on-site power plants as a supplementary support measure for large DC developments.

Looking ahead, TNB has outlined plans to expand its generation capacity in Peninsular Malaysia by 7.6GW by 2030. This expansion includes 500 megawatts (MW) from the fifth phase of its large-scale solar initiatives and 2.4GW under the Corporate Renewable Energy Supply Scheme. After 2030, an additional 2.3GW of generation capacity is expected to come online between 2031 and 2033. These increases will partly offset the planned retirement of 6.6GW of existing generation capacity by 2030, which includes 4.3GW from coal-fired plants.

In addition to TNB’s own generation assets, the national power grid is set to receive an extra 1.2GW from a gas-fired power plant operated by THB Power Sdn Bhd by 2028. This diversification of energy sources aligns with ongoing efforts to ensure a stable and sustainable power supply to meet rising demand, particularly from the expanding data centre sector.

Overall, the growth in data centres is expected to be a significant driver of Malaysia’s power sector investment and expansion over the coming years, with TNB playing a central role in meeting the 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.