The government plans to draft the Digital Infrastructure (Data Centre) Bill for Cabinet submission in 2027 to regulate the industry’s growth.
PUTRAJAYA: The government plans to draft the Digital Infrastructure (Data Centre) Bill for submission to the Cabinet next year to regulate the growth of the data centre industry in line with the country’s energy and water supply capacity.
Economy Minister Akmal Nasrullah Mohd Nasir said the measure aims to ensure that investments in the industry add value to the domestic economy, in addition to addressing utility constraints and avoiding imbalances in environmental impact.
He said the proposal to draft the bill is part of the strategic regulatory plan agreed upon by the National Economic Action Council (NEAC) at a meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim today.
He said the agreement was reached following the presentation of the National Strategic Direction Towards Sustainable Data Centre Development by the Ministry of Digital.
“This step is taken to address utility constraints, avoid environmental impact imbalances, and ensure that data centre investments provide real economic spillovers to the local digital ecosystem,” he said in a statement.
Akmal Nasrullah said NEAC also agreed that the four lead ministries, along with the implementing agencies, would adopt the Circular Economy Framework (CEF) presented by the Ministry of Economy.
“NEAC agreed that the lead ministries, namely the Ministry of Housing and Local Government, the Ministry of Investment, Trade and Industry, the Ministry of Science, Technology and Innovation, and the Ministry of Human Resources, along with the implementing agencies, should adopt the CEF with an integrated governance, monitoring, and coordination structure,” he said.
He noted that the framework aims to lead the country’s transition from a linear economic model based on the “use-and-dispose” concept to a circular economy that optimises the lifespan of materials, reduces waste and preserves the value of resources.
“This integrated policy was formulated to address the issue of fragmented implementation across ministries in the past, to avoid economic losses due to the loss of valuable resources, and to support the Net Zero aspiration by 2050,” he said.
In other developments, Akmal Nasrullah said the meeting also reviewed the National Economic Resilience Framework presented by the Economic Affairs Division, Prime Minister’s Office, as a comprehensive long-term measure to address external economic shocks.
“The meeting agreed that this proposal should be presented to the Cabinet and further discussed at a meeting of ministry secretaries-general and heads of service chaired by the Chief Secretary to the Government,” he said.
He highlighted that NEAC today examined three strategic policy priorities to drive sustainable growth and strengthen the resilience of the country’s economy in the face of structural challenges and global economic uncertainties.
He said the agreed policies must be implemented in an integrated manner, particularly to enhance the efficiency of resource use, ensure that data centre investments add value to the domestic economy, and strengthen the country’s preparedness to face external economic shocks.
Akmal Nasrullah said the Ministry of Economy, as the NEAC secretariat, will coordinate and monitor follow-up actions with the relevant ministries and implementing agencies.
“The government’s priority is not just growth and investment, but a more productive, sustainable, and resilient economy with real benefits for the people and businesses,” he added.