The Malaysian government plans to draft the Digital Infrastructure (Data Centre) Bill for submission to the Cabinet in 2027 to regulate the data center industry towards more sustainable growth. The proposed bill was agreed at the National Economic Action Council (NEAC) meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim yesterday. The decision was made following a proposal on the National Strategic Direction Towards Sustainable Data Centre Development by the Ministry of Digital.
Essentially, the bill aims to ensure investments add value to the domestic economy, address water and electricity constraints while minimizing environmental impact, said Economy Minister Akmal Nasrullah Mohd Nasir in a statement.
The lead ministries, namely the Ministry of Housing and Local Government, the Ministry of Investment, Trade and Industry, the Ministry of Science, Technology and Innovation, and the Ministry of Human Resources, along with the implementing agencies, should adopt the Circular Economy Framework (CEF) presented by the Ministry of Economy, Akmal added. The CEF proposes an integrated governance, monitoring, and coordination structure,
This could be Malaysia’s most important regulatory development for data centers so far, according to observers. Data center developers may eventually face more formal statutory requirements beyond existing task-force approvals and utility arrangements, they added.