Malaysia has 40 data centre applications on the table this year alone

Malaysia has received more than 40 applications to expand or build new data centres in 2026 alone. Here's what is happening, and what it means for the data centre industry.

Surging interest

Just this year, Malaysia's Data Centre Task Force (DCTF) has received more than 40 applications to build new data centres or expand existing ones.

The DCTF is a high-level government committee established in 2025 to coordinate and regulate Malaysia's digital infrastructure and data centre industry.

The figure was revealed by Deputy Minister Sim Tze Tzin, who spoke on behalf of Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani at the Data Centre Nexus event yesterday.

For context, data centre and cloud computing projects alone accounted for close to 44% of all approved investment projects, or RM95.8 billion, in the first half of 2026.

What is happening

As I wrote previously, Malaysia's data centre surge over the last three years has no equivalent. According to a JLL report released last August, Malaysia will have more data centre capacity than Singapore, Australia and Japan by 2029.

The rush is precisely why Malaysia established the DCTF to coordinate the government's response. Last year, it also started moderating approvals to preserve finite resources.

I believe this is the first time the government has publicly shared the number of applications for the year. And what a big number it is.

The evolving face of data centres

Not that long ago, every data centre investment was welcomed with open arms. Today, the insatiable appetite for digital infrastructure is forcing governments to choose.

As nations struggle to accommodate so many new facilities, they are starting to tighten approvals and become pickier about the developments they allow. Look around the region and the pattern is hard to miss.

Singapore has shifted to a phase of controlled growth, using its Call for Application (CFA) process to allocate data centre capacity to operators who commit to stringent requirements around low-carbon energy use, energy-efficient designs, and economic contributions, among others.

Thailand, in a surprise announcement two weeks ago, said it will pause the construction of 49 data centres as it finalises new regulations.

In Malaysia, the priorities are AI adoption, home-grown innovation, and how developments translate into skilled talent and higher-value jobs, said Tze Tzin. Other criteria include investment value, water requirements, energy requirements, network connectivity, and economic and digital contributions.

I'm just amazed at how quickly everything has transformed for the data centre industry. Not long ago, the question was how to attract data centre investments. Now, it's which ones to accept.