Melaka wants to build a 2GW AI data centre park. Here's what we know
Own power plant, desalination and solar, with 2GW targeted by 2031.
Melaka is entering the AI race with a gigawatt-scale, low-carbon AI data centre park, complete with its own power plant, desalination, battery storage and solar. Here's everything I know.
Speaking at the CGNEI Gas Turbine Power Committee 2026 Work Conference today, Melaka's Chief Minister shared the plans the state is taking to strengthen its energy sector. He also revealed that Melaka Corporation (MCorp) and Edra Power Holdings are looking into developing an integrated data centre ecosystem.
If successful, this would catapult Melaka into a top data centre hub, with more capacity than Singapore has today.
Power is the new bottleneck
The rise of AI has led to a global rush to build new data centres. In Malaysia, it has accelerated an existing surge in Johor into a once-in-a-generation data centre boom.
But that unprecedented growth is not without its challenges. For one, it has significantly reduced Malaysia's electricity surplus and led to new guidelines. There is now growing pressure for off-grid power generation for data centres, with a self-generation framework currently being developed.
A low-carbon AI data centre park
While I understand the AI data centre park in Melaka was conceived before the self-generation framework was mooted, it will come with a dedicated 1.4GW Combined Cycle Gas Turbine (CCGT) power plant. A CCGT is a high-efficiency plant that generates electricity by combining a gas turbine and a steam turbine in a single system.
The park is designed to be highly sustainable. It will draw zero potable water, relying instead on a water treatment plant and waste-heat desalination. Renewable energy will come from land-based and floating solar, while Tenaga Nasional Berhad (TNB) serves as interim and partial standby supply. In addition, an on-site Battery Energy Storage System (BESS) will ensure far less diesel use.
Who's building it
The plan is to deliver up to 2GW of data centre capacity by 2031, built for AI from the outset with support for racks above 100kW. The park itself will be driven by MCorp Technology and developed by a joint venture of Ditrolic and Alpha InfraCo.
It is easy to announce plans. The harder question is whether a multi-gigawatt data centre park will actually materialise. I spoke with Alpha InfraCo co-founder James P. Young at w.media CDC in KL recently, and it sounds like the crucial components are in place. James told me Alpha InfraCo has received strong early interest from hyperscale off-takers, as well as global AI and cloud players.
The first wave of data centre buildup went to those who were quick to grab land parcels and power, then flip them for profit. I think the second wave will belong to more seasoned operators with the knowledge and capabilities to fit everything together.
The question now is whether Melaka can pull it off.
