The government is stepping up scrutiny on the remaining RM149 billion in unrealised data centre investments by filtering for high-quality industry players genuinely committed to operating in Malaysia.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said total data centre investment commitments pledged to the government have reached RM280 billion, but only RM131 billion have been realised so far.
“As such, this gap needs to be reassessed to identify industry players that are genuinely serious.
“This includes co-locator and hyperscaler companies that truly intend to operate in this country and require locations with specific security standards,” he said.
Johari said data centre projects require massive electricity and water resources, making careful screening and sustainable planning critical.
According to Tenaga Nasional Berhad records, Malaysia currently has 47 operational data centres, while another nine facilities remained under construction as of December 2025.
He said the government, through the Data Centre Task Force (DCTF), has introduced sustainability guidelines in line with Malaysia’s broader renewable energy push.
The guidelines include parameters on energy and water efficiency aimed at reducing environmental impact while improving operational performance.
Johari said operators are encouraged to adopt advanced energy-efficient technologies, including liquid cooling and immersion cooling systems, to replace conventional cooling methods and significantly improve energy efficiency.
The government is also exploring alternative water sources such as reclaimed water, seawater and other untreated water supplies to reduce reliance on treated water resources.
