What is Malaysia's proposed Data Centre Bill?

It is a planned Digital Infrastructure (Data Centre) Bill that would regulate data centre growth according to the country's energy and water supply capacity, and aim to ensure investments benefit the domestic economy.

When will the Data Centre Bill go to Cabinet?

Economy Minister Akmal Nasrullah Mohd Nasir said on 19 October 2026 that the government plans to submit it to Cabinet next year, after the National Economic Action Council agreed to the proposal.

Policy & regulation 19 October 2026

Malaysia to draft Data Centre Bill for Cabinet next year, says Akmal Nasrullah

Economy Minister Akmal Nasrullah Mohd Nasir said the government plans to draft a Digital Infrastructure (Data Centre) Bill for Cabinet submission next year, to regulate growth in line with energy and water supply capacity. According to the New Straits Times, citing Bernama, the National Economic Action Council chaired by Prime Minister Anwar Ibrahim agreed to the proposal.

Key points

The bill aims to ensure data centre investments benefit the domestic economy, ease utility constraints and limit disproportionate environmental harm.
The Digital Ministry presented the National Strategic Direction Towards Sustainable Data Centre Development before the council's decision.
The Economy Ministry, as the council's secretariat, will coordinate and monitor follow-up with ministries and agencies.

Why it matters for Malaysia

Tying data centre growth to energy and water capacity in law would give the AI infrastructure build firmer limits. Investors will watch how the rules are drafted.

Questions answered

What is Malaysia's proposed Data Centre Bill?: It is a planned Digital Infrastructure (Data Centre) Bill that would regulate data centre growth according to the country's energy and water supply capacity, and aim to ensure investments benefit the domestic economy.
When will the Data Centre Bill go to Cabinet?: Economy Minister Akmal Nasrullah Mohd Nasir said on 19 October 2026 that the government plans to submit it to Cabinet next year, after the National Economic Action Council agreed to the proposal.

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