The Ministry of International Trade and Investment announced that the establishment of a sustainable Data Centre Framework, anticipated to be ready by October 2025, is aimed at ensuring that policies and implementation of data centre development are comprehensively, transparently, and proactively coordinated to drive the nation’s digital economic growth.
This announcement follows the Data Centre Task Force (DCTF) meeting held on July 21, 2025. The meeting acknowledged that the Ministry of Digital will be responsible for developing this framework.
Furthermore, the DCTF has decided that the Malaysian Investment Development Authority (MIDA) will serve as the focal point and lead agency for approving all new and expansion investment applications related to data centre projects. Endorsement and coordination at the DCTF level for data centre investments and expansions which is crucial to ensure that every initiative and project implementation is realized in an organized manner, while avoiding functional overlaps and redundant investment incentives.
MITI adds that in line with this, strategic coordination with all relevant agencies and state governments will be systematically implemented to support the sustainable, competitive, strategic, and investor-friendly development of the national data centre ecosystem.
The DCTF was established in February 2025 with the objective of formulating, coordinating, and monitoring the implementation of policies and initiatives for the nation’s data centre industry development, encompassing planning, investment approvals, and infrastructure requirements. Today’s DCTF meeting was co-chaired by the Minister of Investment, Trade and Industry, Senator Tengku Datuk Seri Utama Zafrul Aziz, and the Minister of Digital, Gobind Singh Deo. It was also attended by the Deputy Minister of Investment, Trade and Industry, senior officials from the Ministry of Investment, Trade and Industry (MITI) and the Ministry of Digital (KD), as well as representatives from relevant ministries and agencies.
Tengku Zafrul stated, “With clear and consistent policies, Malaysia has successfully attracted and increased data centre investments. Data centres are crucial drivers of the digital economy, with a high estimated economic multiplier. Therefore, policy synergy between MITI and KD is vital in strengthening Malaysia’s appeal as a key regional hub for data centre investments and digital infrastructure to continue supporting Malaysia’s economic development in the long term.”
Gobind Singh Deo further commented, “The Ministry of Digital is responsible for ensuring Malaysia’s digital economy is developed in an orderly and sustainable manner. Accordingly, the Sustainable Data Centre Framework, set to be launched by October 2025, will ensure that data centre development policies and implementation are comprehensively coordinated. Transparent and decisive policies are essential to continue reassuring investors about the nation’s sustainable digital economic growth goals for the benefit of the Malaysian people and business sector.”
These measures are expected to boost investor confidence and ensure orderly and sustainable growth within Malaysia’s data centre sector
