KUALA LUMPUR, Jan 9 (Bernama) -- The utilities sector remains a key beneficiary of Malaysia’s accelerating data centre roll-out, underpinned by resilient electricity demand growth and long-term recurring income streams.
Kenanga Investment Bank Bhd (Kenanga IB) said it maintained the financial year 2026 (FY2026) demand growth forecast of 3.5 per cent supported by rising commercial load and rapid data centre capacity additions.
“Data centre load utilisation rose sharply to 710 megawatt (MW) in September 2025 from 503 MW in June 2025. As at September 2025, 29 data centre projects with total capacity of 3,800 MW had been completed, including 11 projects (1,900MW) commissioned during the first nine months of FY2025.
“Year to date, eight new electricity supply agreements (ESAs) were signed, adding 1,100 MW, bringing the total to 49 ESAs with cumulative capacity of 7,100 MW,” it said in a note today.
With a tight timeline to deliver six gigawatt (GW)-eight GW of new capacity by 2030, outcomes for the Energy Commission’s new power generation request for proposals are expected by end-2025 or early-2026, Kenanga IB said.
Construction is likely to commence from end-2026, alongside ongoing extensions of existing and expiring power purchase agreements.
In addition, with no new coal-fired plants planned, gas-fired generation remains the key swing capacity to support demand growth.
Kenanga IB maintained overweight on the utilities sector with Tenaga Nasional Bhd remaining the top pick as the long-term primary beneficiary of the data centre boom, given its exposure to demand growth, the transmission and distribution capital expenditure upcycle and new capacity build-outs.
Independent power producers such as Malakoff Corporation Bhd and YTL Power International Bhd stand to benefit from both brownfield extensions and greenfield opportunities.
Meanwhile, rising gas demand underpins positive earnings prospects for Petronas Gas Bhd and Gas Malaysia Bhd, it added.
-- BERNAMA
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