Data centres must deliver more than investment: Deputy minister, MIDA
KUALA LUMPUR: Malaysia has recorded RM385.7 billion in data centre-related investments from 2021 to the first half of 2026.
Malaysia has attracted RM385.7 billion in data centre investments from 2021 to the first half of 2026, according to Deputy Investment, Trade and Industry Minister Sim Tze Tzin. However, the government aims for the sector's expansion to generate more local businesses, skilled jobs, and technological capabilities. The next phase of digital infrastructure development must prioritize creating economic value from the expanding capacity, according to Sim.
This includes embracing AI adoption, fostering home-grown innovation, developing skilled talent, and generating high-value jobs. Speaking at Data Centre Nexus (DCN) 2026 today, Sim emphasized that Malaysia should be recognized as a competitive, resilient, and sustainable digital hub, where infrastructure, technology, talent, and innovation come together to create high-value economic activity.
Malaysian Investment Development Authority (MIDA) chairman Tengku Datuk Seri Zafrul Abdul Aziz echoed Sim's sentiment, stating that the benefits of data-centre investments should extend beyond the facilities themselves. MIDA CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid highlighted the focus on building a sustainable ecosystem while managing the sector's energy, water, and land requirements.
The ultimate goal, he said, is not merely to increase the number of data centres in Malaysia, but to foster a competitive, innovative, and sustainable ecosystem. DCN 2026 brought together various stakeholders, including operators, technology firms, government agencies, financial institutions, and local suppliers. The event witnessed a significant growth in the number of participating data-centre companies and Malaysian vendors, with 14 companies and 51 vendors attending in 2026 compared to eight and 17 at the inaugural event in 2025.
Discussions at the event centered around AI infrastructure, sustainability, local supply chains, and digital technology adoption. Malaysia's data centre electricity demand is expected to surpass 5,000MW by 2035.
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