KUALA LUMPUR (June 6): Prime Minister Datuk Seri Anwar Ibrahim renewed his call for a regional grid as demand for electricity surges with the geopolitical tensions in the Middle East and boom in data centres.

The energy crisis sparked by disruptions to shipping traffic at the Strait of Hormuz has exposed the vulnerability of global energy supply chains, while rapid development of artificial intelligence (AI) requires unprecedented levels of electricity, he said.

“The challenge before us is not only to generate more energy, but to ensure that it remains secure, affordable and sustainable,” Anwar said in his speech at the Energy Transition Conference 2026 on Thursday.

To address these challenges, Anwar said Asean must deepen regional cooperation to strengthen energy security, and pressed for the Asean Power Grid as no single country can efficiently meet future energy demand on its own.

Malaysia is hosting dozens of new and existing data centres crucial for AI, cloud services, and advanced computing. However, the facilities consume enormous amounts of power at a time when the country is grappling with oil and gas supply shock.

Prices of coal and natural gas — the main inputs for power generation in Malaysia — have surged as the Iran war dragged into its fourth month.

Anwar said that AI also presents opportunities to accelerate energy transition efforts. From improving grid efficiency and forecasting renewable energy generation to optimising industrial energy use, AI has the potential to contribute towards strengthening the energy system, he noted.

“The challenge, however, lies in ensuring that the growth of AI does not outpace the sustainability ambitions it is also expected to support,” he said.

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