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
Johor stops approving Tier 1 and Tier 2 data centres.
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.
New non-AI data-centre applications stopped nationally. No written definition of “AI data centre” had been published as of Nov 2026.
Johor will not approve high-water-demand designs; only Tier 3 and 4 air-cooled halls are considered.
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.
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.
At least 30% renewable energy for the sector, with no effective date yet.
Sources
- Malay Mail, non-AI data centres frozen
- NST via w.media, Johor approvals
- Malay Mail, Johor high-water designs
- The Vibes, technology transfer and power conditions
- Malay Mail, 30% renewables rule
- Baker McKenzie, data-centre framework and GBI tool
Last checked 8 November 2026