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

An aerial view shows Google’s first data centre under construction at Elmina Business Park, Selangor August 26, 2025. — Bernama pic

First Published: Friday, 13 Nov 2026 11:01 AM MYT

KUALA LUMPUR, Nov 13 — The Digital Ministry is currently in the final stages of drafting the Digital Infrastructure (Data Centre) Bill. 

The ministry said the bill aims to create a clearer, more comprehensive regulatory framework to strengthen the protection, operational resilience, and governance of data centres, in line with their importance as the nation’s critical digital infrastructure.

“In terms of timeline, the government aims for this bill to be finalised through the policy and legislation coordination process, then presented for consideration and debate in the Dewan Rakyat in 2027, subject to the government’s approval. 

“Once passed and enforced, the Digital Ministry will coordinate the implementation of the regulatory framework to ensure compliance with the standards of safety, resilience and continuity of operations being set,” said the ministry in a written reply to the Dewan Rakyat published on the Parliament’s website today. 

The reply responded to Syahredzan Johan’s (PH-Bangi) question on the Digital Ministry’s plan and timeline to introduce a legal framework, such as the Digital Infrastructure Bill, to strengthen the security and resilience of digital infrastructure. 

Meanwhile, the ministry said that up to October 2026, a total of 11 data centre projects have been approved in Kuala Lumpur, with two projects currently under construction and nine already in operation. 

According to the ministry, every data centre project development application needs to obtain approval from the Data Centre Task Force (DCTF) where the assessment done includes the aspects of availability and adequacy of electricity and water supply. 

“Meanwhile, based on records for the period from January 2025 to June 2026, the average actual water consumption of data centres in Kuala Lumpur and Selangor amounts to 2.4 million litres per day.

“At the same time, the water supply margin reserve in both areas is still at a good level and is sufficient to accommodate the current demand,” it said.

The written reply responded to Onn Abu Bakar’s (PH-Batu Pahat) question on the number of new data centres that have been approved, are being built and are planned to be developed in the Federal Territory of Kuala Lumpur, and the assessment of the impact of the development of these large-scale data centres on the adequacy of electricity and water supply. — Bernama