Malaysia’s Nuclear Comeback: Why the Malaysia Nuclear Energy Plan Is Back for Baseload Security
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Malaysia’s Nuclear Comeback: Why the Malaysia Nuclear Energy Plan Is Back for Baseload Security

Published on: Nov 02, 2026 | Author: Marketing & Communications

Malaysia is reconsidering nuclear power as it hunts for firmer baseload power security. One driver is the need to support energy-intensive sectors such as data centres, which are expanding faster than grids can typically reinforce. Another is a fuel-security warning: Malaysia risks becoming a net gas importer within 10 to 20 years, despite producing oil and gas. Against that backdrop, the government has reopened a once-shelved nuclear debate, but under tighter political, environmental, and geoeconomic constraints than earlier discussions.

The revived direction is visible in policy markers. In 2024, the Cabinet approved a 2035 nuclear power deployment target. In December 2025, the government amended the nuclear regulatory framework and mandated permits for the import, export, and transshipment of radioactive materials. Nuclear also appears in the 2023 National Energy Transition Roadmap (NETR) as one of ten long-term energy catalysts under consideration, while the 12th Malaysia Plan calls for ongoing study of small modular reactor (SMR) technology. Together, these steps form the spine of today’s Malaysia nuclear energy plan, even as the hardest questions still sit ahead.

Why Baseload Pressure Is Rising Faster Than Nuclear Timelines

Power demand growth is now being linked directly to data centres. One estimate cited for Malaysia says data centres could consume up to 30% of the country’s national power supply by 2030, rising from 8.5 TWh in 2024 to 68 TWh by 2030 (Ember). In parallel, Malaysia’s data centre pipeline has been estimated at nearly 13 GW of IT load capacity (JPMorgan). Analysts also warn about grid and price impacts: Wood Mackenzie cautions that high data centre load demand in Peninsular Malaysia could push spot power prices 21% above its base-case scenario. These pressures explain why firm, dispatchable options are being revisited.

At the same time, the nuclear pathway is long and complex. One assessment notes it can take 12 to 15 years to bring large nuclear power plants from the decision stage to the deployment phase. Malaysia also faces a regulatory runway: before any deployment, it must ratify at least eight international conventions and protocols, and regulatory milestones alone have been reported to take 10 years. The country has seen this cycle before. Plans under a 2014 Nuclear Roadmap, with Tenaga Nasional Bhd (TNB) intended as operator, included two operational plants by 2021, but the plans were cancelled in 2018 over capacity and expertise gaps, particularly around radioactive waste disposal.

Read also Indonesia’s Nuclear Bet: How First Reactors Could Recast the Indonesia Nuclear Power Market by 2040

SMRs are often framed as the more viable fit for Malaysia’s grid context, but they are still described as relatively nascent, with technological viability and commercial potential expected to be proven only in the next decade. Still, one industry briefing says Malaysia is targeting 1.2 GW of SMR capacity by 2035, revised from an earlier 2031 target due to regulatory challenges. Regionally, Wood Mackenzie estimates Southeast Asia will require approximately $208 billion in investment to develop 25 GW of nuclear capacity by 2050, with SMRs emerging as a preferred technology. In official messaging, Malaysia’s leaders have emphasized nuclear’s potential role: Deputy Prime Minister Fadillah Yusof said nuclear energy offers stable, low-carbon baseload power and can reduce dependence on fossil fuels.

What is driving Malaysia to reopen its nuclear file?

Sources cite rising electricity needs from energy-intensive sectors such as data centres and concerns about long-term fuel security, including the risk Malaysia could become a net gas importer within 10 to 20 years.

What milestones signal the current Malaysia nuclear energy plan is active again?

In 2024, the Cabinet approved a 2035 nuclear power deployment target. In December 2025, Malaysia amended the nuclear regulatory framework and required permits for importing, exporting, and transshipping radioactive materials.

How big could Malaysia’s data centre electricity demand become by 2030?

An estimate cited from Ember says data centres could consume up to 30% of Malaysia’s national power supply by 2030, rising from 8.5 TWh in 2024 to 68 TWh by 2030.

Why might nuclear baseload relief arrive later than demand growth?

One assessment says large nuclear plants can take 12 to 15 years from decision to deployment, while regulatory milestones alone are reported to take 10 years and Malaysia must ratify at least eight international conventions and protocols before deployment.

What SMR target has been cited for Malaysia, and by when?

One industry briefing says Malaysia is targeting 1.2 GW of SMR capacity by 2035, with that deadline revised from an earlier 2031 target due to regulatory challenges.

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