Malaysia plans to table data centre bill to Cabinet in 2027

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Malaysia data centre legislation 2027

Highlights

The Malaysian government will table the Digital Infrastructure (Data Centres) Bill to the Cabinet in 2025 as a strategic regulatory measure for the data centre sector.
Four key ministries will implement and coordinate the Circular Economy Framework to optimise resources, reduce waste and support net-zero aspirations by 2050.
The National Economic Action Council meeting agreed to review and bring the National Economic Resilience Framework to the Cabinet for long-term planning to address external economic shocks.

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

Regulatory plan and ministerial framework

As reported by The Edge Malaysia, the government plans to draft the Digital Infrastructure (Data Centres) Bill for tabling to the Cabinet next year as part of a strategic regulatory plan agreed by the National Economic Action Council at a meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim on Monday.

Economy Minister Akmal Nasrullah Mohd Nasir said the proposal follows the presentation of the National Strategic Direction Towards Sustainable Data Centre Development by the Ministry of Digital. In a statement, he said the measure was taken to address utility constraints, prevent imbalances in environmental impact, and ensure that data centre investments generate real economic spillover effects for the local digital ecosystem.

He said the NEAC also agreed that four lead ministries, together with implementing agencies, would adopt the Circular Economy Framework presented by the Ministry of Economy. The ministries involved are the Ministry of Housing and Local Government, the Ministry of Investment, Trade and Industry, the Ministry of Science, Technology and Innovation, and the Ministry of Human Resources, with an integrated governance, monitoring and coordination structure.

Implications for industry and economic resilience

According to Akmal Nasrullah, the framework aims to drive the country's transition from a linear economic model based on the use-and-dispose concept to a circular economy that optimises material lifecycles, reduces waste and preserves resource value. He said the integrated policy was formulated to address fragmented implementation across ministries in the past, avoid economic losses resulting from the loss of valuable resources, and support net-zero aspirations by 2050.

In other developments, the meeting also reviewed the National Economic Resilience Framework presented by the Economic Affairs Division of the Prime Minister's Department as a comprehensive long-term measure to address external economic shocks. Akmal Nasrullah said the meeting agreed for the proposal to be tabled to the Cabinet and further discussed at a meeting of ministerial chief secretaries and heads of service chaired by the chief secretary to the government.

In our earlier coverage of the approval of 27 data centre projects under the Data Centre Task Force (DCTF) as of July 2026, we highlighted an investment value of RM225.97 billion and the concentration of projects in Johor, Selangor and Negeri Sembilan. The article also emphasised the impact on the high-skilled job market, including targets for local workforce placement, as well as a minimum 30% local content requirement and periodic monitoring to ensure economic benefits for the local ecosystem.

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