Data Centre Bill to be presented to cabinet next year, says Akmal Nasrullah

PUTRAJAYA: The government intends to draft the Digital Infrastructure (Data Centre) Bill next year, according to Economy Minister Akmal Nasrullah Mohd Nasir, to regulate the data centre industry's expansion in harmony with Malaysia's energy and water supply capacity. The bill aims to ensure that investments in the industry generate value for the domestic economy while addressing utility constraints and environmental impacts.

This plan is part of the strategic regulatory agenda approved by the National Economic Action Council (NEAC) chaired by Prime Minister Anwar Ibrahim. The objective is to tackle utility constraints, prevent disproportionate environmental impacts, and ensure data centre investments generate tangible economic benefits for the local digital sector.

NEAC also agreed that the four lead ministries - Housing and Local Government, Investment, Trade and Industry, Science, Technology and Innovation, and Human Resources - along with implementing agencies, should adopt the Circular Economy Framework (CEF) presented by the Economy Ministry. This framework aims to transition Malaysia from a linear economic model to a circular economy that optimizes material lifespan, reduces waste, and preserves resource value.

The Circular Economy Framework, agreed upon by the lead ministries and implementing agencies, will guide the country's shift from a 'use-and-dispose' model to a more sustainable approach aimed at supporting the Net Zero aspiration by 2050.