New Data Centre Approvals Conditional on Energy and Water Capacity in Malaysia
The Malaysian government mandates sufficient energy and water supply before approving new data centre projects, ensuring local needs are met. This approach aims to balance industrial growth with consumer interests, reflecting a strategic commitment to sustainable resource management.
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The Malaysian government has established a policy requiring adequate energy and water supply before granting approvals for new data centre projects. Deputy Minister Sim Tze Tzin stated that the Data Centre Task Force (DCTF) evaluates applications based on existing capacity, ensuring that local residents and industries are prioritized.
Currently, Malaysia has the necessary surplus capacity to support data centre demand without compromising household needs. Additionally, the National Semiconductor Strategy has generated RM91.9 billion in approved investments from January 2024 to March 2026, comprising RM82.9 billion from foreign direct investment and RM8.9 billion from domestic sources.
The government is also targeting the training of 60,000 workers, with 18,062 local talents trained by December 2025. This focus on talent development is crucial for maintaining competitiveness in the semiconductor and artificial intelligence sectors.
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