Malaysia is rapidly becoming a key player in Southeast Asia's data centre industry, with MYR 99 billion in investments since 2023 and plans for an additional MYR 149 billion. Its advantages include inexpensive electricity, labor, and land. However, the environmental impact of these energy-intensive AI data centres is a concern, as they predominantly rely on fossil fuels. Malaysia's electricity is 81% coal-based, conflicting with ambitions to increase renewable capacity to 70% by 2050. Initiatives like the Corporate Renewable Energy Supply Scheme face challenges, yet some industry experts believe data centres can help drive the transition to renewable energy.