Malaysia tightens scrutiny of data centres

The Data Centre Task Force (DCTF) evaluates applications not only based on investment value but also on their requirements for energy, water and connectivity, as well as their potential contributions to Malaysia's long-term economic and digital goals.

Kuala Lumpur (VNA) - The Data Centre Task Force (DCTF) has received more than 40 applications to establish or expand data centre operations in Malaysia this year, according to the Ministry of Investment, Trade and Industry (MITI).

The DCTF evaluates applications not only based on investment value but also on their requirements for energy, water and connectivity, as well as their potential contributions to Malaysia's long-term economic and digital goals.

Speaking at the Data Centre Nexus 2026 event, MITI Deputy Minister Sim Tze Tzin emphasised that as the scale and pace of investment increase, Malaysia will focus on the value these capabilities bring, including artificial intelligence (AI) adoption, home-grown innovation, skilled talent and high value-added jobs.

He said the Malaysian government has strengthened the capacity of the DCTF to promote a more coordinated approach to the data centre industry.

Malaysia is also establishing standards for power and water-use efficiency, as well as carbon efficiency. The Energy Commission and the National Water Services Commission are developing relevant frameworks and guidelines to support the sustainable development of the data centre industry.

Tzin argued that as the industry continues to grow, operators need to commit to using renewable energy, improving efficiency, managing resources responsibly and adopting more sustainable solutions throughout their operations.

Malaysia approved investments worth 218.5 billion MYR (54.6 billion USD) across various economic sectors in the first half of this year, an increase of nearly 12% compared with the same period in 2025. The services sector accounted for 149.6 billion MYR, or 68.5% of the total approved investment, with the information and communication sub-sector, including data centres, accounting for 103.3 billion MYR. Data centre and cloud-computing projects alone accounted for 95.8 billion MYR, or 44% of all approved investment during the period. Malaysia has approved a total of 385.7 billion MYR in data centre-related investments since 2021./.

VNA

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