Malaysia Aims To Regulates Data Center Developments Under Circular Economy Shift

(MENAFN- The Peninsula) Xinhua

Kuala Lumpur: The Malaysian Ministry of Economy announced on Monday that Malaysia is moving to regulate data center developments to ensure sustainable industry growth and transition toward a circular economy.

This will include a Digital Infrastructure (Data Center) Bill, which is expected to be presented to the cabinet next year to tackle concerns about energy and water resources, and ensure investments benefit Malaysia's digital ecosystem, it said in a statement, following a National Economic Action Council meeting.

These policies will be implemented in an integrated manner, specifically to enhance resource-use efficiency, ensure that data center investments provide added value to the domestic economy, and bolster the nation's preparedness against external economic shocks, it said.

The Circular Economy Framework will spearhead the national transition from a linear take-make-dispose economic model toward a circular economy and overcome previous issues of fragmented implementation across ministries, prevent economic losses resulting from the depletion of valuable resources, and support the aspiration to achieve net zero by 2050, it said.

This measure is intended to address utility constraints, prevent disproportionate environmental impacts, and ensure that data center investments generate tangible economic spillover for the local digital ecosystem while supporting Malaysia's artificial intelligence ambitions and addressing environmental imbalances resulting from the industry, it said.

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