Prime Minister Datuk Seri Anwar Ibrahim informed the Dewan Rakyat today that the government has officially restricted new data centre investments that are not directly linked to Artificial Intelligence (AI) or advanced technologies. This decision comes amid growing concerns over the massive electricity and water consumption required to cool the servers in these large-scale facilities. 

The Prime Minister clarified that while Malaysia welcomes high-tech investments, the country must prioritise sustainable growth. Data centres that do not provide "additional benefits" in terms of technology transfer or AI advancement will no longer be easily approved. This move is part of a broader strategy to ensure that the nation's utility resources—which are currently sufficient—remain protected for the long-term benefit of the public. 

Existing data centre projects in the pipeline will proceed, but future applications will undergo a stricter vetting process by the Ministry of Investment, Trade and Industry (MITI). This policy shift signals Malaysia's intention to become a specialized hub for AI infrastructure rather than just a general storage base for global data.