Malaysia aims to achieve a revenue target of RM3.6 billion in the data centre industry by the end of this year.
This is based on the positive signals the government has received from industry stakeholders regarding the investment activity and expansion plans among existing operators.
Digital Minister Gobind Singh Deo said his ministry plays a vital role in supporting this vision through several strategic initiatives throughout 2025, aimed at enhancing the nation’s digital infrastructure.
“The recent approval of the Data Centre Planning Guidelines by the Cabinet is a significant step forward,” said Gobind in his keynote address at the Siemens Data Centre Conference, titled ‘Building the Future of Data Centres in Malaysia’ held in Damansara, Selangor, yesterday.
“These guidelines are designed to standardise and streamline the application and planning approval process for stakeholders involved in data centre development. By providing clear site planning guidelines and procedures for development applications, we aim to facilitate an environment that is conducive to investment while ensuring that our resources are allocated effectively.”
He added that these guidelines will not only support doing business but also complement the overall data centre industry ecosystem.
“They emphasise the importance of strategic location planning for data centres, ensuring that developments align with designated land use zones. This approach is crucial to maintaining a balance between industrial growth and community wellbeing, as buffer zones will be required for data centres located near residential areas to mitigate noise disturbances.
“Moreover, sustainability will remain a core focus for the Digital Ministry, moving forward. As cloud service providers increasingly prioritise environmentally responsible practices, Malaysia recognises the urgency of advancing sustainability initiatives relevant to data centres.”
Gobind added that the government is also developing new guidelines on power usage effectiveness (PUE) and water usage effectiveness (WUE) that will set minimum sustainability requirements for new data centres coming online in 2025.
“These guidelines are being crafted under the guidance of the Standard and Industrial Research Institute of Malaysia, and will ensure that our facilities meet global standards for managing high volumes of power and water consumption,” he said.
With approximately 17 new data centres set to come online in Selangor alone next year, Malaysia is preparing for an increase in power demand that could rise from 990MW currently, to 1,400MW by 2029.
“This growth underscores the importance of strategic planning and collaboration among industry players to ensure that our infrastructure can support this expansion sustainably.”
