Its chairman, Alex Liew, said the sector remains stable for now despite concerns over the global energy crisis and the high energy consumption of data centres.
“But for the long-term, we can have some alternative energy like solar. Maybe we should also go for nuclear energy,” he said at the launch of a report titled “Beyond Compliance: The State of Cyber Resilience in Malaysia 2026” at the Future of Cybersecurity Summit here today.
Liew said the existing grid may come under pressure in the future if Malaysia relies solely on current power sources to support data centre demand.
He said building new power plants or improving the efficiency of existing facilities would take time, making early consideration of alternative energy sources important.
“Of course, with solar maybe, but more so with nuclear. I think it’s faster in terms of ramping up,” he said, adding that solar and nuclear energy could complement the current energy mix of hydro, coal and gas instead of replacing them.
Malaysia’s booming data centre sector has raised concerns about the nation’s power grid due to the global energy crisis triggered by tensions in the Middle East and the Strait of Hormuz.
Data centre energy consumption is projected to exceed 5,000MW by 2035, representing 40% of Peninsular Malaysia’s current power capacity.
Last month, Prime Minister Anwar Ibrahim said the national grid is still able to supply enough power for approved data centre projects despite rising demand.
He also said the government had tightened approvals for new data centres to reduce pressure on electricity and water supply.
Rising RAM, SSD prices add pressure
Separately, at a press conference, Liew said prices of key computer parts, such as memory devices (RAM) and storage drives (SSD), have risen due to global uncertainty and higher demand from artificial intelligence.
He said capacity for these components is increasingly being channelled towards servers and AI, affecting supply for other uses.
“And this eventually will affect chips, not just RAM and SSD,” he said.
Liew said prices had risen significantly in recent months, affecting providers, manufacturers and users.
“I think from December until now, prices of RAM have gone up from RM30 to RM100,” he added.
He said the cost increases have been passed on to customers as providers and manufacturers are unable to absorb the higher prices.