KUALA LUMPUR, Malaysia’s upcoming data centres could release nearly 10 million tonnes of carbon emissions annually — equivalent to putting over two million cars on the road — according to environmental group RimbaWatch.
In a statement, RimbaWatch said the country’s growing data centre industry could produce emissions on par with entire nations like Papua New Guinea, due to Malaysia’s heavy reliance on fossil fuels.
“The emissions from just one sector could rival that of whole countries,” said RimbaWatch director Adam Farhan. “This is largely because our national grid is still dominated by fossil fuels.”
As of January 1, 2025, Malaysia has 14 new data centre projects — including three completed since 2023, two undergoing expansion, five under construction, and four proposed. These projects are expected to add 2.2 gigawatts in capacity, with 1.7 gigawatts having no plans for renewable energy usage.
This would raise the country’s annual electricity demand by nearly 13,000 gigawatt-hours, mostly supplied by fossil fuels. 
RimbaWatch is urging the government to ensure data centre expansion aligns with the country’s climate goals by phasing out fossil fuels and setting strict carbon limits. The group also called for only approving projects committed to 100% renewable energy.
Currently, coal, crude oil and natural gas make up nearly 90% of Malaysia’s energy mix. The government plans to phase out coal-fired power plants by 2044 as part of its long-term energy transition strategy.
