Malaysia’s Ministry of Digital (KD) has been tasked to produce a Sustainable Data Center Framework by October 2025 to streamline policies and ensure comprehensive, transparent, and proactive policy coordination to boost the country’s digital economic growth, according to a press release published on the website of the Ministry of Investment, Trade and Industry (MITI). Towards this end, the Malaysian Investment Development Authority (MIDA) will now be the main agency for approving all new and expansion data centre investment applications in the country.
Included in the framework will be policies related to new projects, expansion of existing data centers, investment and certification, amongst others. This will involve strategic coordination with all relevant agencies and state governments in order to ensure smooth implementation while avoiding duplication of functions, as stated by the Data Centre Task Force (DCTF) in a recent meeting co-chaired by Tengku Datuk Seri Utama Zafrul Aziz, Minister of Investment, Trade and Industry, and Gobind Singh Deo, Minister of Digital.
“With clear and consistent policies, Malaysia has succeeded in attracting and increasing data center investment in the country. Data centers are a vital driver of our digital economy with a high economic multiplier effect. Therefore, this synergy between MITI and the Digital Ministry is essential to strengthen Malaysia’s appeal as a major regional hub for data center investment and digital infrastructure,” said Tengku Zafrul. He added that Malaysia is committed to fostering a sustainable, competitive, strategic, and investor-friendly data centre ecosystem for the benefit of all Malaysians and businesses.
The DCTF was established in February 2025 with the aim of formulating, coordinating and monitoring the implementation of policies and initiatives in the data center industry, including the planning aspects, investment approvals, and infrastructure requirements.
