KUALA LUMPUR: Malaysia’s energy transition strategy hinges on modernising its power grid and deploying artificial intelligence responsibly to support a low-carbon, future-ready economy, Deputy Prime Minister Datuk Seri Fadillah Yusof said.

He noted that while renewable energy ambitions are growing, grid limitations remain the biggest constraint to scaling clean power across the country.

Addressing delegates at the Global AI, Digital and Green Economy Summit 2025, Fadillah said rapid expansion and digitalisation of transmission and distribution systems are essential to prevent renewable deployment from stagnating.

He added that AI has the potential to optimise energy efficiency, manage demand and improve system resilience, but only if it is deployed with integrity and supported by clean energy.

Fadillah cautioned that rising AI compute demand, particularly from data centres, is reshaping electricity load profiles and intensifying pressure on infrastructure.

As a result, he said future projects must meet strict efficiency benchmarks and contribute to grid strengthening where required to earn government support.

Beyond infrastructure, Fadillah stressed the importance of credible climate finance and regional collaboration. He urged stronger Asean cooperation to expand grid interconnections and enable clean electricity to flow to where it is most needed.

He also underscored the need for transparency, warning that instruments such as carbon credits and renewable certificates must be independently verified to maintain market confidence.

According to Fadillah, Malaysia’s approach is anchored in aligning policy, regulation and procurement so that AI serves as a practical tool for energy resilience and decarbonisation.

“Our goal is not technology for its own sake, but systems that deliver measurable outcomes,” he said.

-emchosting.com/