Malaysia has approved 143 data centre investment projects between 2021 and June 2025, worth a total of RM144.4 billion, according to the Ministry of Investment, Trade and Industry (MITI).
Of these, 25 projects with Malaysia Digital (MD) status have been granted incentives under the Digital Ecosystem Acceleration Scheme (DESAC), expected to create 1,429 new jobs.
Answering Sibu MP Oscar Ling Chai Yew at the Parliament, MITI said the government’s focus is to ensure that data centre growth supports the entire value chain, including the use of renewable energy, development of local supply networks and job creation for Malaysians while promoting AI adoption across industries.
The Data Centre Task Force (DCTF), co-chaired by MITI and the Ministry of Digital, also includes the Energy Commission (ST), National Water Services Commission (SPAN), Malaysian Communications and Multimedia Commission (MCMC) and Malaysia Digital Economy Corporation (MDEC). The task force is responsible for developing sustainable policies for the sector.
As of June 2025, national data centre electricity usage stood at 603MW, around 47% of the declared maximum demand (MD) of 1,276MW. The government aims to reach 85% of the declared MD to stabilise the energy supply system.
The Energy Commission has also found speculative applications among some project proposals and has updated capacity forecasts to avoid stranded assets and prevent cost transfers to other users.
Water consumption remains under control, with data from Selangor, Kuala Lumpur, Putrajaya and Johor showing limited impact on domestic and non-domestic supply. Data centres in the Klang Valley use an average of 0.47 million litres daily, accounting for just 0.012% of total usage, while those in Johor consume 9.07 million litres daily, or 0.6% of the state’s total.
MITI reiterated that data centre investments are key to Malaysia’s AI and digital growth ambitions, but must remain balanced with the country’s long-term resource security.
