Malaysia to restrict data center permits
Key Highlights
- Malaysia has stopped approvals for new data centers not supporting artificial intelligence due to power and water concerns.
- All new centers unrelated to AI have been halted.
Malaysia has stopped approvals for new data centers which are not linked to artificial intelligence (AI) due to power and water concerns, said Prime Minister Anwar Ibrahim during Question Time in the Dewan Rakyat on Feb. 24.
The prime minister said, "For the past one and a half years, almost two years ago, we have limited the entry of new data centres that are not related to AI… If an application brings benefits in terms of advanced technology and AI, it is easily approved. All new applications that are unrelated - data centres built merely to take advantage of cheaper water and energy costs - have already been stopped."
Projections from the Energy Transition and Water Transformation Ministry indicate that Malaysia’s national grid will be able to accommodate the expected power demands from these data centers for the next two years.
The Prime Minister said that the government is pursuing other initiatives, including the Asean the Association of Southeast Asian Nations (ASEAN) Power Grid linking Vietnam, Peninsular Malaysia, and Singapore. Malaysia's Sarawak state on Borneo island also has an abundance of hydroelectric and solar energy.