KUALA LUMPUR, May 21 (Xinhua) -- Malaysia's utility firm Tenaga Nasional Berhad (TNB) said Thursday it has committed 43 billion ringgit (10.85 billion US dollars) to modernize and strengthen Malaysia's power grid, as rising demand from artificial intelligence (AI) applications and data centers reshapes the country's electricity consumption landscape.

The investment is aimed at ensuring the national grid can support rapid growth in the digital economy while maintaining energy security and reliability, the firm's Chief Network Officer Mahathir Nor Ismail told national news agency Bernama.

He said Malaysia currently has 36 data centers with a combined capacity of about 4.5 gigawatts (GW), while another 21 projects with 3.7GW are under construction and 79 more projects with around 25.6GW are in the planning stage.

"Electricity demand is expected to grow by about 4 to 6 percent annually, driven not only by data centers, but also industrial electrification, smart buildings and electric mobility," he said.

He also said TNB is enhancing grid flexibility through smart grid technologies, digitalization and renewable energy investments, while AI is also being deployed for load forecasting and predictive maintenance.

He added that battery energy storage systems would play a key role in stabilizing supply and improving grid efficiency as Malaysia accelerates its energy transition.