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Can you still build a non-AI data centre in Malaysia?

Not under a new application. Since 24 February 2026, new non-AI data-centre applications have been stopped nationally, and no written definition of “AI data centre” had been published as of November 2026. Johor has also stopped approving Tier 1 and 2 halls (November 2025) and considers only Tier 3 and 4 air-cooled designs (March 2026).

Rule changes, 2025–2026

  1. Johor stops approving Tier 1 and Tier 2 data centres.

  2. GBI Data Centre Tool 2.0 applies to GBI-registered projects. A GBI certificate may support a MIDA application; it is not stated as required.

  3. New non-AI data-centre applications stopped nationally. No written definition of “AI data centre” had been published as of Nov 2026.

  4. Johor will not approve high-water-demand designs; only Tier 3 and 4 air-cooled halls are considered.

  5. The MITI minister told Parliament that technology transfer and unsubsidised, market-priced power will be key conditions, negotiated when investors apply. This is a stated intention, not yet a published rule.

  6. The National Economic Action Council agreed a strategic direction for sustainable data centres and a Digital Infrastructure (Data Centre) Bill, due at Cabinet in 2027.

  7. At least 30% renewable energy for the sector, with no effective date yet.

Sources

Last checked 8 November 2026

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