The government will ensure that the growth of data centres does not affect electricity supply to existing industries, Investment, Trade and Industry Minister Johari Abdul Ghani said on Nov 4.
He said existing industries are the backbone of the economy and would not be disrupted, even as data centres become important infrastructure for adopting new technologies, including in manufacturing.
Johari said 117 data centres have been approved so far, with a combined maximum energy demand of about 23,500 megawatts. Of these, 55 are already in operation.
Projects must meet a minimum local content requirement of 30%, covering Malaysian consultants, contractors, engineers and procurement managers, he said. The government wants data centre investment to create supply chain opportunities for local companies, while foreign investors bring in the capital and bear the development costs.
He added that Malaysia can support the sector’s growth through its energy resources, including natural gas and its expanding renewable energy capacity.
Johari was speaking to reporters in Kuala Lumpur after officiating the Amazon Web Services (AWS) Cloud and AI Day, where he appeared alongside AWS managing director for Asean Jeff Johnson. Last week, the government put 24 data centre applications on hold pending checks on water and power supply.