Malaysia’s data center sector is projected to consume up to 7.7 gigawatts (GW) of electricity by 2030, according to the Energy Transition and Water Transformation Ministry, though actual consumption currently stands at 1,102 megawatts (MW), representing 54% of the 2,050 MW already approved. EFS Group says this is simply a “timing gap” rather than overbuilding, and says businesses that secure reliable power now stand to benefit as demand catches up.
Local renewable energy and energy efficiency solutions provider EFS Group signed a Heads of Agreement last year with Planet QEOS Sdn Bhd, alongside China Construction Sixth Engineering Bureau, ES Sunlogy Berhad, NuEnergy Holdings Berhad, and Shenzhen Hopewind Electric Corporation Limited, to co-develop Malaysia’s first firm solar power plant under the RM2.32 billion Baram DeepTech Energy Programme.
EFS Group Solar-BESS Project Mitigates Datacenter’s Power Grid Pressure
As Planet QEOS’s Agrovoltaic and Food Security Partner, EFS is co-developing a 310 MWp solar power plant paired with a 900 MWh Battery Energy Storage System (BESS), alongside a 650-hectare agrovoltaic farm integrating solar infrastructure with agriculture in the Baram highlands of northern Sarawak. Darren Tan, Group CEO of EFS Group, said the partnership reflects the direction of sustainable infrastructure development in Malaysia, integrating renewable energy, food production, and community development into a single project.
EFS Group said pairing solar generation with battery storage is becoming a business requirement as Malaysia’s datacenter industry expands, noting that a single power disruption can result in financial losses exceeding US$100,000 and, in some cases, more than US$1 million. The company said solar without BESS represents only a partial solution, while the combination of the two provides a more consistent, round-the-clock power supply.
Tenaga Nasional Berhad’s capital expenditure is set to nearly double, from RM21 billion between 2022 and 2024 to RM43 billion between 2025 and 2027, with the country requiring up to 12GW of new generation capacity by 2031. EFS Group said well-designed solar-plus-BESS systems can help reduce peak demand on the grid and improve load management during critical periods.
The government has confirmed that RM280 billion in datacenter investment has been pledged to Malaysia, though only RM131 billion has been realized so far, with authorities tightening scrutiny on the remaining gap. EFS Group said global hyperscalers face similar scrutiny from their own boards regarding the sustainability of AI infrastructure investments, and that companies treating solar-plus-BESS as core infrastructure are better positioned when pledged capital is deployed.
Darren Tan said EFS Group’s participation in the Baram project reflects the viability of integrating renewable generation, energy storage, and land use into a scalable energy solution, and that the company expects integrated energy solutions to become a larger part of long-term planning for datacenters, manufacturers, and industrial parks in Malaysia.
Pokdepinion: Malaysia is looking to jump ahead in the datacenter game, but the key here is how much of it will end up be truly useful as the scale of which this industry is expanding looks borderline unsustainable right now.
