Malaysia has received more than 40 proposals this year from companies looking to establish or expand data center operations, even as the government seeks to manage the sector’s growing demands for energy, water and connectivity. Malaysia’s Data Centre Task Force (DCTF) assessed the proposals based on factors including investment value, energy and water consumption, connectivity requirements, and their potential contribution to the country’s long-term economic and digital development, Datuk Seri Johari Abdul Ghani, Investment, Trade and Industry Minister reportedly said during a speech at a recent event in Kuala Lumpur.
“As the scale and pace of investment increase, our priorities must evolve alongside the industry. The next phase is about what that capacity delivers: artificial intelligence (AI) adoption, home-grown innovation, skilled talent and higher-value jobs,” he added.
His speech was delivered on his behalf by Deputy Investment, Trade and Industry Minister Sim Tze Tzin.
The government has strengthened the role of the DCTF, which is co-chaired by the Ministry of Investment, Trade and Industry (Miti) and the Ministry of Digital, to improve coordination in the data center industry and set standards for power, water and carbon use efficiency as reported by The Edge Malaysia.
“Through the task force, the Energy Commission and the National Water Services Commission are also developing the relevant frameworks and guidelines to support the sustainable development of the data center industry. As the industry continues to grow, we want to see new capacity supported by operators that are committed to renewable energy, greater efficiency and responsible resource management, while adopting more sustainable solutions across their operations,” Johari further said.
Data center and cloud computing projects accounted for RM 95.8 billion (US$ 23.5 billion), or nearly 44 percent of all approved investments in 1H 2026 while data center related investment approvals have reached RM 385.7 billion (US$ 94.7 billion) since 2021, the minister revealed.
Malaysia approved RM 218.5 billion (US$ 53.6 billion) in investments across various economic sectors in the first half of 2026, an increase of almost 12 percent from the same period last year.