Malaysia’s new data center planning guidelines aim to streamline development processes and solidify the nation’s role in the Asian data center market.
The government of Malaysia recently approved new Data Center Planning Guidelines (GPP), marking a significant step toward standardizing the nation’s data center development process.
The guidelines (PDF) aim to streamline application and planning approval processes for stakeholders and could help to make Malaysia a more attractive location for data centers than ever before.
The GPP specifically targets data center developments exceeding 1 MW capacity, covering both new areas and existing buildings. A key feature includes strict zoning requirements, limiting data center construction to commercial and industrial areas, with mandatory buffer zones near residential areas to minimize noise disturbance.
Currently, Malaysia hosts 32 operational data centers with 19 more under construction, primarily concentrated in Cyberjaya, Kuala Lumpur, and Johor.
With strategic investments and supportive policies, Malaysia’s digital economy is primed for growth (Image: Alamy)
The country’s strategic data center initiatives have already attracted major tech giants including Amazon, Google, and Oracle. In May, Google detailed its plans to invest $2 billion into the Malaysian data center and cloud industry. Amazon announced in August that it was investing $6.2 billion in Malaysia. In October, Oracle announced its own $6.5 billion investment to help grow in Malaysia.
“Malaysia has a number of key advantages, its location and proximity to Singapore means that the undersea cables connecting it to the rest of the world are accessible,” Roy Illsley, chief analyst at Omdia, told Data Center Knowledge.
“It has more land available than Singapore for building data centers, and the government has committed to increase the renewable energy to 70% by 2050, it has a target of 31% by 2025.”
Why the Malaysia Data Center Planning Guidelines Matter
The Malaysian data center planning guidelines have the potential to really accelerate growth.
Omdia analyst Siraj Aziz explained that the guidelines for data centers will become one of the conditions for applying for government incentives. The guidelines include power usage effectiveness (PUE), water usage effectiveness (WUE), and carbon usage effectiveness (CUE).
“This is definitely the right move at the right moment for Malaysia,” Aziz said. “We have heard concerns regarding potential water supply constraints in Johor due to the massive amount of data centers being built there. So, it is important that there’s clarity in policy direction.”
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