MALAYSIA has approved 143 data centre projects from 2021 to June 2025, with a focus on sustainable investment, efficient energy use, and careful water management
“The direction of the Government is to ensure data centre investments prioritise whole-of-value-chain development,” the minister said in response to a question by Oscar Ling Chai Yew (Sibu).
“This includes using data centres as off-takers of renewable energy, creating local supply chains for equipment, generating quality jobs for Malaysians, and expanding the adoption of AI in our economy.”
Of the approved projects, 25 have received incentives under the Digital Ecosystem Acceleration Scheme, representing RM144.4 billion in investment and expected to create 1,429 new jobs.
On energy consumption, data from the Energy Commission shows actual electricity use across the nation’s data centres as of June 2025 reached 603 megawatts, or 47 per cent of the declared maximum demand of 1,276 megawatts.
The Government aims to achieve 85 per cent of maximum demand for overall system stability.
The Energy Commission has also analysed end-user commitments and actual usage to reduce the risk of stranded energy assets. A Request for Information process has been implemented to improve electricity supply planning.
Water usage by data centres remains modest. In Selangor, Kuala Lumpur, and Putrajaya, average daily consumption is 0.47 million litres, accounting for only 0.012 per cent of total water use. In Johor, daily usage is 9.07 million litres, representing 0.6 per cent of total state consumption.
The minister emphasised that the Data Centre Task Force, co-chaired by MITI and the Ministry of Digital Economy and including agencies such as the Energy Commission, SPAN, SKMM and MDEC, is tasked with crafting policies for the sustainable growth of the sector. - November 5, 2025
