Kuala lumpur: Malaysia is taking proactive steps to ensure sustainable development in its data centre industry by managing high water usage and promoting renewable energy solutions, Deputy Prime Minister Datuk Seri Fadillah Yusof announced. He highlighted the country’s efforts to review tariff structures for heavy industries and encourage the use of recycled water and district cooling technologies as part of its ambition to become a regional data centre hub.
According to BERNAMA News Agency, Fadillah emphasized that these measures are crucial in ensuring that the growth of the data centre sector remains responsible, with sustainability at the forefront. He made these remarks during the opening speech at the Third Sustainability Environment Asia 2025 conference. The anticipated National Sustainable Data Centre Framework, which was expected to be unveiled last month, will likely outline the implementation strategies for developing data centres, including the introduction of a dedicated water tariff for these facilities.
The Ministry of Energy Transition and Water Transformation (PETRA) has previously agreed to establish a specific water tariff of RM5.50 per cubic metre for data centres, replacing the current industrial rate. Fadillah, who also serves as the Energy Transition and Water Transformation Minister, noted Malaysia’s achievement of exceeding its renewable energy goals for 2025 ahead of schedule, showcasing the country’s robust progress in this area.
Malaysia’s renewable energy expansion includes solar, hydro, waste-to-energy, and green hydrogen solutions, with support from energy storage technologies. The potential role of nuclear energy is also being considered under the 13th Malaysia Plan, while natural gas continues to serve as a transition fuel. Fadillah reiterated Malaysia’s goal to become a regional centre of excellence in water management by 2040, driven by innovation, digitalisation, and skilled talent.
Under the National Energy Transition Roadmap (NETR), Malaysia is on track to achieve 70 per cent renewable energy installed capacity by 2050, reflecting its commitment to sustainable energy solutions and environmental stewardship.