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Data Centre Growth in Malaysia Requires Environmental and Innovation Focus

Johor:The rapid expansion of artificial intelligence (AI) and data centre investments in Malaysia must be coupled with stringent environmental measures and policies that encourage local innovation while providing tangible benefits to the country.

According to BERNAMA News Agency, Johor Menteri Besar Datuk Onn Hafiz Ghazi stated that the state has established a dedicated council to review incoming data centre proposals, ensuring investments meet specific requirements. Speaking at the 'Towards a Futuristic Nation Leadership, Innovation and Transformation' forum during the International Young Future Leaders Summit (iFuture) 2026, he noted that Johor only accepts Tier 3 and Tier 4 data centres that focus on water efficiency and green technologies.

The forum, held at the World Trade Centre (WTC), also included Selangor Menteri Besar Datuk Seri Amirudin Shari and former health minister Khairy Jamaluddin as panellists, and was attended by Higher Education Minister Datuk Seri Dr Zambry Abd Kadir. Panellists were responding to university students' concerns about the environmental impact of data centres.

Amirudin emphasized Selangor's adoption of the 'Polluter Pays Principle' and a mandatory 30 percent local supply chain requirement to ensure domestic companies and talent benefit from data centre investments. This policy not only creates opportunities for local businesses but also challenges them to meet international standards.

Khairy highlighted the importance of developing meaningful local applications using the growing computing capacity, cautioning against the potential export or misuse of Malaysia's computing resources on superficial digital trends. He urged young scientists and technology leaders to focus on productive applications that serve humanity.

The three-day iFuture 2026 summit, organized by the Ministry of Higher Education (MOHE) through the Department of Higher Education (JPT) in collaboration with Yayasan Perkasa Siswa (YPS) and Universiti Malaysia Pahang Al-Sultan Abdullah (UMPSA), brings together 1,231 university students, including 813 Malaysians and 418 international participants from 60 countries.

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