Government to safeguard industrial electricity supply as data centres develop
Data centre projects must meet a minimum local content requirement of 30%, including participation by local consultants, contractors and engineers.
Malaysia will protect the electricity needs of existing industries while supporting data centre development, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said on Nov 4. He said the government must balance the infrastructure needed for future technologies with energy supplies for established industrial sectors.
Speaking to reporters after officiating the Amazon Web Services Cloud and AI Day programme in Kuala Lumpur, Johari said the government had set a local content minimum of 30% for data centre development. This includes local consultants, contractors, engineers and procurement managers.
He said the infrastructure should serve foreign investors while opening up supply-chain opportunities for Malaysian companies. The government encourages foreign investors to provide the capital for these facilities, allowing Malaysia to benefit from the infrastructure and the economic opportunities it creates, he added.
Johari said data centres would support technology use across industries, including manufacturing as it moves towards more advanced technologies. Malaysia therefore needs sufficient infrastructure for companies to adopt and develop technological solutions, he said.
He also said Malaysia could support data centre development with its energy resources, including natural gas, alongside renewable energy development. Such infrastructure was important for technology adoption and productivity across economic sectors, he added.
