Sustainable Energy Essential for Digital Economy, Says Prime Minister Anwar Ibrahim
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim has called for stronger regional energy cooperation and accelerated investment in sustainable power solutions, warning that rising electricity demand driven by artificial intelligence (AI) and digital infrastructure is reshaping Southeast Asia’s energy landscape.
Speaking at the Energy Transition Conference 2026 (ETCon26) at the Kuala Lumpur Convention Centre on Thursday, Anwar said countries across the region are facing a dual challenge of ensuring energy security while transitioning towards cleaner and more sustainable energy sources.
He noted that recent geopolitical tensions affecting the Strait of Hormuz have highlighted the vulnerability of global energy supply chains, with disruptions reverberating far beyond the Middle East and impacting economies throughout Asia.
“The world is increasingly interconnected, and no nation is immune to external shocks. The current energy crisis demonstrates that traditional fossil fuel-based systems are not only finite but also increasingly exposed to geopolitical risks,” he said.
According to Anwar, Southeast Asia’s energy demand is expected to surge by more than 60 per cent by 2040, driven by rapid urbanisation, industrial expansion and the growing adoption of advanced digital technologies.
He said the rise of artificial intelligence, cloud computing and large-scale data centres is creating unprecedented demand for electricity, forcing governments and energy providers to rethink long-term energy planning.
“As countries pursue AI-driven growth and digital transformation, the challenge is no longer simply producing more energy. We must ensure that energy remains secure, affordable and sustainable for future generations,” he said.
The Prime Minister reiterated the importance of the ASEAN Power Grid initiative, describing regional energy integration as a practical necessity rather than a long-term aspiration.
He welcomed the reaffirmation of the ASEAN Power Grid Enhanced Memorandum of Understanding during the recent ASEAN Summit in Cebu, saying it reflects a shared commitment among member states to strengthen cross-border electricity connectivity.
Anwar pointed to the successful transmission of renewable hydropower from Laos through Thailand and Malaysia into Singapore since 2022 as evidence that regional electricity trading can be achieved through cooperation and political commitment.
While acknowledging the significant energy demands associated with AI development, Anwar said the technology also offers powerful tools to support the energy transition.
He highlighted AI’s ability to improve grid efficiency, optimise industrial energy consumption and enhance forecasting for renewable energy generation, enabling more resilient and responsive energy systems.
However, he cautioned that policymakers and industry leaders must ensure that the rapid growth of AI infrastructure does not undermine sustainability goals.
Malaysia, he said, is well-positioned to benefit from the global digital economy due to its strategic location and investor-friendly environment. The country continues to attract major data centre investments, particularly in Johor and the Klang Valley, further strengthening its role as a regional technology hub.
With demand for electricity expected to increase significantly, Anwar expressed confidence that Tenaga Nasional Berhad (TNB) will play a central role in balancing economic growth, energy security and environmental sustainability.
“We will fulfil our commitment to the rakyat by ensuring that the energy transition is fair, energy supplies remain secure, and technological advancement serves the interests of the nation,” he said.
The conference, themed “Energy & AI: The Synergy for Energy Transition”, gathered policymakers, industry leaders, investors and energy experts from more than 60 countries to discuss strategies for advancing clean energy adoption and strengthening energy resilience in an increasingly digital world.