Malaysia approves 27 data centre projects worth RM225.97 billion

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Malaysia approves 27 data centre projects

Highlights

Malaysia approved 27 data centre projects worth RM225.97 billion as of July 2026, with 16 in Johor, 10 in Selangor and one in Negeri Sembilan.
These projects are expected to create 4,053 jobs, including 3,523 high-skilled positions, with 89.21% filled by local citizens.
All projects are subject to a minimum 30% local content requirement and regular monitoring by the Malaysian Investment Development Authority every six months.

This article was translated from the original. Read the original version by our correspondent here.

Project distribution and implementation as of July 2026

As reported by The Edge Malaysia, the Ministry of Digital said that 27 data centre projects with estimated investments of RM225.97 billion had been approved under the data centre task force as of July 2026.

Of the total, 16 projects are in Johor, 10 in Selangor and one in Negeri Sembilan. The ministry stated that one data centre has commenced operations, while the rest are still under construction.

The information was provided in the ministry's written reply to a question from Datuk Dr Ahmad Yunus Hairi regarding the number of data centres approved under the DCTF by state and the economic spillover to local communities.

Employment impact and local content requirements

According to the ministry, the projects are expected to create 4,053 jobs, including 3,523 high-skilled positions in electrical and mechanical engineering, networking, cybersecurity, and data centre operations and maintenance.

Malaysians are expected to fill 89.21% of these high-skilled positions. Projects approved under the DCTF are also subject to a minimum local content requirement of 30%, with implementation and compliance monitored by the Malaysian Investment Development Authority through project implementation reports that must be submitted every six months.

To strengthen technology and skills transfer, Talent Corporation Malaysia is developing a data centre facilities management programme to train local participants in skills related to data centre operations and maintenance.

In our earlier coverage of the RM40 million subcontract awarded to Qudotech (AWC) for plumbing and sanitary works at a hyperscale data centre in Port Dickson, we outlined the scope of work, the implementation schedule through October 2027, and the implications for the company's order book. The article also placed the development in the context of Malaysia's rapidly growing data centre sector and rising demand for supporting infrastructure.

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