Electricity demand rises 7% in Q1 2026 amid strong commercial growth

Malaysia's electricity demand surged by 7% year-on-year in the first quarter of 2026, fueled by robust activity in the commercial sector, especially data centers, and higher consumption among domestic users. This marks a significant increase following substantial growth observed in 2025.

Analysts noted that the commercial segment was the primary driver of this demand increase, experiencing a notable rise of 13%. This surge highlights the expanding digital infrastructure and business activities within the country.

Domestic consumption also contributed significantly to the overall growth, with a year-on-year increase of 9.7%. This suggests a rise in household electricity usage, potentially linked to economic recovery or changing consumer habits.

The report from CGS International, citing analyst Dharmini Thuraisingam, indicates a strong upward trend in energy consumption, underscoring the dynamic economic landscape of Malaysia in early 2026.

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Growth in electricity demand in the quarter was driven primarily by the commercial segment, which increased by 13 percent, as well as domestic customers who grew by 9.7 percent year-on-year.