Malaysia Imposes Strict Environmental Conditions on Data Centres

PETALING JAYA — Malaysia has put strict environmental conditions in place for data centre operations, with companies involved agreeing to meet the requirements, Prime Minister Anwar Ibrahim said on Nov 4.

“Yes, these are the conditions imposed… and they have accepted,” Anwar told reporters after attending the Mantap Malaysia Bersama AI programme at Universiti Malaya. He was responding to questions over whether enough was being done to address environmental concerns linked to the sector’s rapid expansion.

Investment, Trade and Industry Minister Johari Ghani said the government would ensure data centre development does not affect electricity supply to existing industries. He said data centres are important infrastructure for emerging technologies, but their growth must not disrupt the energy needs of other sectors.

Malaysia has approved 117 data centres with a combined maximum energy demand of about 23,500MW upon completion. Of these, 55 are already operational, while the remaining projects are at various stages of planning and construction.