Malaysia’s data centre rules aim to green the sector, not slam the door

Unlike the US backlash, Malaysia is drawing up efficiency requirements to guide a sustainable tech boom In the first quarter of this year, at least 75 data centre projects worth around US$130 billion were delayed or blocked by local opposition, close to the total value of schemes stymied by local resistance during the whole of 2025. Last month, New York moved to become the first US state to impose a temporary ban on the construction of large new data centres because of fears that the scale and speed of development put too much strain on energy and water resources. Lawmakers in more than a dozen other states are mulling temporary bans on the facilities. Research group Data Centre Watch said “moratoria [have] expanded from local exceptions to a multi-front political battle”.

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