The Data Centre Task Force (DCTF) in Malaysia has received over 40 applications this year for the establishment or expansion of data centre operations, highlighting sustained investor interest in the country’s digital infrastructure sector. This development was announced during the Data Centre Nexus 2026 event held in Kuala Lumpur.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani emphasized that each application is assessed not only on its investment value but also on its demands for energy, water, and connectivity, as well as its alignment with Malaysia’s broader economic and digital goals. Due to the rapid growth of the industry, the government’s focus is shifting towards leveraging data centre capacity to advance artificial intelligence adoption, foster local innovation, cultivate skilled talent, and create higher-value employment opportunities.
While the minister was unable to deliver his keynote speech in person, his address was read by Deputy Minister Sim Tze Tzin. In his remarks, Johari highlighted measures taken to strengthen the role of the DCTF, which is jointly headed by the Investment, Trade and Industry Ministry (Miti) and the Digital Ministry. The task force serves as a platform to coordinate efforts and set industry standards pertaining to operational efficiency and sustainability.
Malaysia is instituting clear guidelines to improve power and water usage efficiency in data centres, surpassing many regional benchmarks with regards to carbon usage reduction. The Energy Commission and the National Water Services Commission are actively developing frameworks to ensure sustainable growth within the data centre sector. Operators are expected to commit to renewable energy adoption, enhanced resource efficiency, and broader sustainable practices throughout their operations.
In terms of investment performance, Johari disclosed that Malaysia approved a total of RM218.5 billion across multiple sectors in the first half of 2026, marking an increase of nearly 12% compared to the same period in the previous year. The services sector led with RM149.6 billion in approvals, accounting for 68.5% of the total investment. The information and communications sub-sector, which includes data centres, saw RM103.3 billion approved, with data centre and cloud computing projects representing RM95.8 billion—approximately 44% of all approved investments during that timeframe.
Since 2021, data centre-related investments have accumulated to RM385.7 billion, reflecting the critical role this industry plays in Malaysia’s economic and digital transformation plans. The government’s ongoing efforts aim to balance robust industry growth with sustainable practices, positioning Malaysia as a competitive regional hub for digital infrastructure.