Malaysia currently has approximately 117 data center projects at various stages—ranging from those already in operation and those that have secured approval, to others currently under development or construction.
Most recently, the Minister of Investment, Trade and Industry, Datuk Seri Johari Abdul Ghani, stated that states found to lack sufficient water supplies will no longer be permitted to approve or develop new data centers within their jurisdictions.
This does not mean the federal government is halting the approval process for new data centers; rather, it ensures that the needs of the public are prioritized before the development of infrastructure—such as data centers—that demands significant electricity and water resources.
Of the 117 approved data center projects, 55 are already operational, 19 are under development, and 16 have received approval but have yet to begin development. Meanwhile, another 27 projects are in various stages of development; however, the electricity requirements for these facilities will be met through power sources external to the existing national grid.
Furthermore, data centers that draw power from Tenaga Nasional Berhad (TNB) will be required to pay the full cost for the capacity supplied, regardless of whether their actual consumption is lower. It was previously noted that 57 existing data centers consume 6,237 MW of electricity supplied by TNB, while an additional 11,172 MW of electrical capacity will be required for the 60 data centers slated for future operation. Meanwhile, for all 117 approved data center projects, the processes—including development, equipment installation, recruitment, and procurement—must meet a 30 percent local service utilization requirement, ensuring that the development of this infrastructure benefits local companies and workers.
