Data centre boom prompts new safeguards as Malaysia targets 2027 for regulatory bill

KUALA LUMPUR — The Malaysian Digital Ministry is nearing completion on the Digital Infrastructure (Data Centre) Bill, a regulatory framework designed to bolster protection, operational resilience, and governance of data centres within the nation's critical digital infrastructure. The bill is expected to be finalized and presented to the Dewan Rakyat by 2027, pending government approval.

The Digital Ministry explained that once enacted, the regulatory framework will be overseen by the ministry to ensure compliance with safety, resilience, and continuity standards. So far, 11 data centre projects have been approved in Kuala Lumpur by October 2026, with two projects underway and nine already operational. All data centre projects must secure approval from the Data Centre Task Force (DCTF), which evaluates aspects such as the availability and adequacy of electricity and water supply.

The ministry reported that the average daily water consumption of data centres in Kuala Lumpur and Selangor is 2.4 million liters, with a sufficient water supply margin reserve to meet current demand. The ministry responded to questions from Syahredzan Johan (PH-Bangi) and Onn Abu Bakar (PH-Batu Pahat) regarding the digital infrastructure bill, the number of new data centres being developed, and their potential impact on electricity and water supply adequacy.