KUALA LUMPUR, June 4 — Prime Minister Datuk Seri Anwar Ibrahim today said Asean’s energy demand is projected to rise by more than 60 per cent by 2040, driven by rapid urbanisation, industrialisation and the growing adoption of artificial intelligence (AI).

He said the region is entering a period of unprecedented energy demand as governments and businesses invest heavily in digital infrastructure, advanced manufacturing and AI technologies.

“The swift expansion of AI is set to accelerate this trajectory further, as data centres and advanced computing infrastructure require unprecedented levels of electricity.

“I recall that three years ago, when I first looked at these projections, I told TNB and the ministry to reassess them because the growth of industrial hubs in this region, particularly in Malaysia, alongside rising interest in AI and semiconductors, would inevitably demand more water and more energy,” he said in his speech at the Energy Transition Conference 2026 here today.

Anwar also praised Tenaga Nasional Berhad (TNB) for adapting to changing industry demands and responding to growing energy requirements.

He said the challenge facing policymakers is not simply to produce more energy, but to ensure future energy supplies remain secure, affordable and environmentally sustainable.

According to Anwar, AI can improve grid efficiency, optimise industrial energy consumption and enhance forecasting for renewable energy generation.

“As nations compete to build digital economies and harness AI-driven growth, our challenge is not merely to generate more energy, but to ensure it is secure, affordable, and sustainable.

“I stress the word affordable, because regardless of how impressive the results presented to me may be, I will always acknowledge them, but I will also examine the cost borne by consumers,” he said.

Anwar added that researchers, universities, policymakers and industry leaders should pay greater attention to issues such as affordability, connectivity and societal values when developing and deploying AI technologies.

Despite these concerns, he said AI remains a powerful tool that can support the energy transition by improving grid efficiency, forecasting renewable energy generation and optimising industrial energy consumption.

“However, the challenge lies in ensuring that the growth of AI does not exceed the sustainability ambitions it is meant to support,” he said.

Anwar also said Malaysia has emerged as a key destination in the global digital infrastructure race due to its strategic location and competitive investment environment, attracting major data centre investments, particularly in Johor, the Klang Valley and increasingly in Sarawak.