Data Centre Bill to go to Cabinet in 2027, says Akmal Nasrullah

Economy minister Akmal Nasir announced that the government plans to draft a Digital Infrastructure (Data Centre) Bill and present it to the Cabinet next year. The legislation aims to regulate the growth of the data centre industry to match the country's energy and water supply capacity, according to Nasir. The bill intends to ensure that investments in the data centre industry generate value for the domestic economy, tackle utility limitations, and prevent uneven environmental impacts.

The proposal to create the bill is part of a broader strategic regulatory plan agreed upon by the National Economic Action Council (MTEN) during a meeting chaired by Prime Minister Anwar Ibrahim. This agreement came after the digital ministry presented the national strategic direction towards sustainable data centre development.

MTEN also decided that four lead ministries – housing and local government, investment, trade and industry, science, technology and innovation, and human resources – would adopt the circular economy framework proposed by the economy ministry. The framework aims to shift Malaysia from a linear economic model based on the "use-and-dispose" concept to a circular economy that maximizes the lifespan of materials, minimizes waste, and preserves resource value.

Nasir explained that this integrated policy was designed to resolve past issues of fragmented implementation across ministries, prevent economic losses due to resource wastage, and support Malaysia's net zero aspiration by 2050. The National Economic Resilience Framework, presented by the Prime Minister's Office's economic affairs division, was also reviewed at the meeting.

The framework is considered a comprehensive long-term measure to handle external economic shocks. The meeting concluded that the framework should be submitted to the Cabinet and further discussed at a meeting of the ministries' secretaries-general and heads of service, chaired by the chief secretary to the government. Additionally, the economy ministry, as the MTEN secretariat, will coordinate and oversee the implementation of follow-up actions with the relevant ministries and implementing agencies.