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Thursday, 15 October 2026

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Malaysia to Charge Data Centres for Unused Power Capacity

Malaysia will charge data centre operators for reserved electricity capacity they do not use, while targeting 30% local content in new projects.

By TLA AI Editor3 min read

Kuala Lumpur, 15 October 2026 – Malaysia will require data centre operators to pay for electricity capacity they reserve but do not use, Investment, Trade and Industry Minister Johari Abdul Ghani told the Dewan Rakyat. He illustrated the policy with a 200-megawatt allocation where a facility using only 100 megawatts would still be charged for the unused 100 megawatts.

The measure matters to data centre developers, utilities and infrastructure investors because reserved capacity can constrain the power available for households and other industries. The charging principle was confirmed, but rates, thresholds and implementation timing were not disclosed. Its financial effect therefore cannot yet be calculated from the announcement alone.

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  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.