Malaysia Pushes Data Centre Expansion with New Capacity Checks and Economic Boost

Deputy Prime Minister Fadillah Yusof said state governments must verify that sufficient electricity and water are available before approving data‑centre projects. A national task force will assess energy and water needs, and industrial users are urged to rely on reclaimed or recycled water. The government may fine operators that reserve more resources than needed.

MBSB Research notes that the data‑centre boom has driven strong growth in non‑residential construction and capital‑goods imports, which rose 29% in 2024 and 2025. With MYR 144.4 billion approved for 143 projects, the sector could create 30,000‑40,000 jobs and lift Malaysia’s GDP by about 11.4% (MYR 231.5 billion). Analysts also warn that the rapid expansion raises electricity and water demand, challenging the country’s net‑zero emissions target.