Malaysia Launches Data Centre Sector Report Supports 4,400 Jobs

Malaysia's data centre sector is rapidly expanding, with economic output projected to grow from US$1.4 billion in 2024 to US$34 billion by 2030, supporting nearly 31,000 jobs. Recognizing the sector's significant energy and water consumption, the Ministry of Investment, Trade and Industry (MITI) launched the Green Building Index Data Centre Tool Version 2.0 to promote sustainable practices, including energy efficiency, water conservation, and renewable energy adoption. To streamline policy and regulatory oversight, Malaysia plans to introduce a Sustainable Data Centre Framework by October 2025, designating the Malaysian Investment Development Authority (MIDA) as the central authority for approving new and expansion projects, reducing regulatory overlap. This framework is part of a broader effort by the Data Centre Task Force to coordinate investment approvals, infrastructure planning, and policy implementation across agencies to support Malaysia's ambition to become a major digital hub. The country has attracted significant investment from global companies such as Microsoft, Nvidia, Google, and ByteDance, with the number of data centres expected to quadruple over the next decade. Officials emphasize that clear, transparent, and consistent policies are essential to sustain growth while addressing environmental and economic challenges in the sector.