Malaysia to establish data centre framework to streamline policies

Published Tue, Jul 22, 2025 · 12:25 PM

Malaysia will establish a data centre framework in October to streamline policies and development in the sector, the trade and digital ministries said on Tuesday.

The Malaysian Investment Development Authority will be the main agency to approve all new data centre projects and investments, as well as the expansion of existing projects, the ministries said in a joint statement.

Malaysia has recently seen a boom in data centres, driven by growing demand for artificial intelligence, with technology giants like Microsoft, Nvidia, Alphabet’s Google and ByteDance announcing billions of dollars of investments in the country since the beginning of last year.

Data centre facilities in the South-east Asian country are projected to quadruple in the next decade from the current 18.

The government’s framework will ensure that policies are aligned with data centre planning in a way that will drive the growth of Malaysia’s digital economy, the ministries said.

“Transparent and thorough policies are important to continue reassuring investors about the goals of sustainable growth in the country’s digital economy for the benefit of the Malaysian people and business sectors,” Digital Minister Gobind Singh Deo said in the statement. REUTERS

Share with us your feedback on BT's products and services