The Government of Malaysia has announced that Malaysia has restricted approvals for new data centres not linked to artificial intelligence (AI) for nearly two years, citing concerns over pressure on the national power grid and water supply. The policy limits entry to projects demonstrating high-technology and AI-related benefits, while non-AI applications have been halted.
The government stated that current projections show sufficient national capacity to meet energy and water demand. Long-term measures to support infrastructure include participation in the ASEAN Power Grid, with interconnections from Vietnam to Peninsular Malaysia and Singapore, as well as plans to channel energy from Sarawak to Peninsular Malaysia and Singapore.
Anwar also confirmed that a forthcoming AI Governance Bill, currently being drafted by the Digital Ministry, will focus on ethical considerations, citizens’ rights, accountability and risk management. The bill will involve stakeholder consultations and parliamentary review, and will ensure existing laws remain enforceable. The Intellectual Property Corporation of Malaysia is expected to strengthen enforcement under the Copyright Act 1987 to protect AI training data and generated outputs.