Malaysia has sufficient land and water to produce more power as needed.
It's just a matter of investment. If anything, the stable power demands from datacenters make business case for new builds stronger.
Also, it's not like these datacenters are serving western customers. These datacenters are far MORE costly than those in the EU/US because of the higher cooling costs, and also the latency is more than 200ms to the EU and US making them not suitable for real time use cases.
This story is nothing but a contrived whingefest, like much of the media these days.