Powering the Digital Gold Rush: RE and BESS as the Strategic Backbone of Malaysia’s Digital Economy

Through proactive facilitation by MIDA, innovation by local companies such as Solaroo, and technological advances from global partners such as Leoch Battery, Malaysia is strengthening the foundations needed to support sustainable digital growth. Rather than simply accommodating regional digital expansion, Malaysia is positioning itself as a regional leader in sustainable, resilient, and future-ready digital infrastructure.

As AI workloads continue to grow and digital infrastructure scales at unprecedented speed, the challenge is no longer simply attracting investment, but ensuring that growth is supported by reliable, sustainable and future-ready energy systems.  In this evolving landscape, Renewable Energy (RE) and Battery Energy Storage Systems (BESS) are becoming critical enablers of Malaysia’s digital economy, by supporting rising electricity demand while strengthening energy security, grid stability, and sustainability.

This critical intersection was the focus of the high-level industry panel, “RE + BESS as the Backbone of Malaysia’s Digital Economy,” held during ENERtec Asia 2026, where MIDA served as the Strategic Partner. Moderated by Ir. Dr. Ng Kok Chiang, Vice President of The Electrical and Electronics Association of Malaysia (TEEAM), the discussion brought together policymakers, global technology leaders, engineering firms and industrial players to discuss how Malaysia can build a resilient energy ecosystem to support digital growth.

From 2021 to Q12026, Malaysia approved RM464.6 billion in digital investments. A significant 66.7% (RM309.8 billion) was channelled into data centres and cloud infrastructure, highlighting the rapid expansion of Malaysia’s digital infrastructure.

These investments are generating opportunities beyond the digital sector by driving demand for renewable energy, advanced engineering services, battery technologies, skilled technical talent and local supplier capabilities. This creates multiplier effects across the wider economy.

Because data centres operate around the clock, their rapid expansion is significantly increasing national electricity demand. Meeting this demand will require a balanced energy mix supported by renewable energy and energy storage solutions.

Hyperscalers such as Microsoft, Google, and AWS are also accelerating their transition towards 24/7 Carbon-Free Energy (CFE), requiring their operations to be matched by carbon-free electricity throughout the year.

Representing the nation’s promotion agency, MIDA highlighted how government policies are being aligned to support digital investments through localised RE and BESS infrastructure.

MIDA assumes a strategic role in ensuring that digital infrastructure growth is matched by ecosystem readiness through policy alignment, investment facilitation and industry collaborations.

Under national frameworks such as the New Industrial Master Plan (NIMP) 2030, the National Energy Transition Roadmap (NETR), and the New Incentive Framework (NIF), MIDA supports investments that accelerate renewable energy deployment, energy storage adoption, and industrial decarbonisation. Among available incentives are Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE), which help de-risk large-scale renewable energy and energy storage investments while encouraging greater private sector participation.

MIDA is also facilitating collaboration between global technology leaders and Malaysian companies to accelerate technology transfer and strengthen domestic supply chain capabilities.

While government policies provide the framework, local Engineering, Procurement, Construction, and Commissioning (EPCC) companies assume a critical role in delivering reliable energy infrastructure. Mr. See Heng Chun, Director of New Energy and Technology Innovation at Solaroo RE Sdn. Bhd., shared how smart BESS integration helps address solar intermittency for AI infrastructure and stabilises renewable energy generation.

For engineering companies, the focus has evolved beyond installing photovoltaic (PV) systems to integrating lithium and hybrid storage technologies that deliver stable and constant power.

AI-driven Energy Management Systems (EMS) are also enabling predictive battery charging and discharging using weather forecasting and real-time grid data.

Mr. Robin Li, Chief Technology Officer of Leoch Battery, shared insights into the rapid advances taking place in battery cell technology.

As data centres increasingly require gigawatt-scale energy storage, technologies such as Lithium Iron Phosphate (LFP) batteries and emerging sodium-ion batteries are making BESS safer, more durable, and more cost-effective. Partnerships between global manufacturers and Malaysian EPCC companies also enable faster deployment of world-class, utility-scale storage solutions.

As Malaysia strengthens its position as a regional digital hub, attention is shifting beyond investments to building the ecosystem needed to sustain long-term growth. To support the country’s RM309.8 billion in approved data centres and cloud infrastructure investments, Malaysia must continue to accelerate talent development, expand its pool of certified professionals and strengthen capabilities in designing, deploying, and managing large-scale BESS installations.

Malaysia’s digital economy is poised for sustained growth, but its long-term success lies in the alignment of three critical pillars: progressive policy support, advanced engineering capabilities, and next-generation energy storage technologies. Through strategic initiatives by MIDA’s facilitation, innovative execution by local companies such as Solaroo, and continuous advancements in battery technology from global leaders such as Leoch Battery, Malaysia is strengthening the foundations needed to support its expanding digital infrastructure. By bringing together policy, local capabilities, and global innovation, the nation is not merely accommodating regional digital growth – it is positioning itself as a model for sustainable, resilient, and future-ready digital developments.

For further information on investment opportunities in renewable energy, battery energy storage systems (BESS), and Malaysia’s digital infrastructure ecosystem, please contact MIDA’s Green Technology Division at https://www.mida.gov.my/staffdirectory/green-technology-division/ or the Business Services and Regional Operations Division  at https://www.mida.gov.my/staffdirectory/business-services-and-regional-operations-division/