KUALA LUMPUR, June 4 (Xinhua) -- The growth of artificial intelligence (AI) presents abundant opportunities to accelerate energy transition efforts and ensure Malaysia's sustainability aspirations are achieved, Prime Minister Anwar Ibrahim said on Thursday.

While the move towards sustainability is inevitable, it is imperative to ensure that energy remains secure, affordable to consumers and sustainable, and that should remain a priority, Anwar said in his keynote address at the Energy Transition Conference 2026 (ETCon26).

"AI presents opportunities to accelerate energy transition efforts. From improving grid efficiency and forecasting renewable energy generation to optimizing industrial energy use, AI has the potential to strengthen energy systems," he said.

"The challenge, however, lies in ensuring that the growth of AI does not outpace the sustainability ambitions it is also expected to support ... As countries race to build digital economies and harness AI-driven growth, the challenge before us is not only to generate more energy, but to ensure that it remains secure, affordable and sustainable," he said.

Anwar also noted that relying too heavily on imported fossil fuels has proven to be vulnerable to disruptions, citing recent developments around the Strait of Hormuz as an example of how events far from Southeast Asia can still have significant repercussions for the region.

"In the Strait of Hormuz, the epicenter lies far from here, yet its tremors are felt across the entire region. They are straining supply lines that power industries and keep homes running, while also triggering energy emergencies across ASEAN, neighboring countries, and indeed the world," he said.

Meanwhile, Energy Transition and Water Transformation Minister Fadillah Yusof said every major chapter in Malaysia's development, from rural electrification and industrialization to digital transformation, was made possible because the nation chose to invest not only in infrastructure but also in people, institutions and a shared purpose.

He noted that the energy transition must be approached in the same spirit and said the government has committed 43 billion ringgit (10.7 billion U.S. dollars) to this end.

Fadillah, who is also deputy prime minister, also highlighted the importance of international cooperation with trusted partners for energy security and noted that ASEAN has seen success with its cross-border power grid initiative.

Abdul Razak Abdul Majid, chairman of Malaysia's utility firm Tenaga Nasional Berhad (TNB), said that its major investments are focused on modernizing the national grid, strengthening infrastructure and accelerating the shift towards a cleaner energy system while expanding grid connection facilities to support the growing demand from data centers with additional government allocations being invested in this goal.

"This is aimed at upgrading infrastructure and accelerating the country's transition to clean energy systems including connection facilities to support the growing number of data centers," he said.