The Malaysian Cabinet has officially approved the Data Centre Planning Guidelines (GPP), developed by the Ministry of Housing and Local Government through PLANMalaysia. These guidelines aim to standardise the application and approval process for data centre development, enhancing Malaysia’s role as a digital infrastructure hub.
Minister Nga Kor Ming announced the new guidelines at a press conference on Thursday, stating that the GPP will help streamline development plan applications, including planning permissions and building plans, specifically for data centres with capacities exceeding one megavolt ampere (MVA).
Supporting Digital Growth and Investment
The GPP is part of Malaysia’s broader strategy to attract foreign investments from major global players, such as Amazon, Google, and Oracle, who are already setting up data centres in the country. As Malaysia continues to grow as a preferred destination for digital infrastructure, the new guidelines will further boost its standing as an attractive data centre hub in ASEAN.
Minister Nga emphasized, “In the next four to five years, Malaysia is expected to become the largest data centre hub in ASEAN, with energy needs of approximately four gigawatts.”
Key Highlights of the Data Centre Guidelines
The newly introduced guidelines cover several important areas:
- Site Planning: Data centres will only be permitted in commercial and industrial zones, ensuring a streamlined process for both new constructions and repurposed existing buildings.
- Buffer Zones: Data centres near residential areas will need to create buffer zones to mitigate noise disturbances for local communities.
- Planning Controls: Local authorities will oversee planning controls to ensure that data centre developments adhere to the land-use designations, supporting Malaysia’s ease of doing business initiative.
The GPP supports Malaysia’s strategy to offer a robust digital infrastructure, enabling smoother processes for both domestic developers and foreign investors.
Malaysia as a Key Data Centre Hub
As of May, Malaysia has 32 operational data centres, with an additional 19 under construction. Cyberjaya, Kuala Lumpur, and Johor are currently the main areas of focus for data centre developments in the country.
The GPP is set to be tabled at the National Council for Local Government Authorities meeting on Nov 14, and copies of the guideline book will be distributed to 156 local authorities.
These measures are expected to accelerate the growth of Malaysia’s data centre ecosystem, making the country a more competitive player in the region’s digital economy.
