KUALA LUMPUR, Nov 4 — Data centre operators seeking grid connection in Peninsular Malaysia must now submit 10-year staggered energy projection plans and execute binding commercial pacts with Tenaga Nasional Berhad (TNB), as the federal government clamps down on speculative developers hoarding power capacity.

The regulatory conditions were detailed in a written parliamentary reply by the Ministry of Energy Transition and Water Transformation to Rompin MP Datuk Abdul Khalib Abdullah, who questioned the mounting electricity and water footprints of hyperscale computing facilities on domestic reserve margins.

Under the framework, grid access approvals now hinge on strict technical evaluations assessing actual load matching and localized transmission capacity. Rather than granting bulk allocations upfront, the government is releasing grid access in phases governed by binding Electricity Supply Agreements (ESA) to eradicate what the ministry termed “phantom demand”, referring to artificial capacity bookings that inflate reserve commitments without translating into operational consumption.