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 while addressing utility constraints and avoiding disproportionate environmental impacts.
He said the proposal was 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 followed a presentation by the Digital Ministry on the National Strategic Direction Towards Sustainable Data Centre Development.
"This step is taken to address utility constraints, avoid disproportionate environmental impacts, 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 and the implementing agencies would adopt the Circular Economy Framework (CEF) presented by the Economy Ministry.
"NEAC agreed that the lead ministries, namely the Housing and Local Government Ministry, the Investment, Trade and Industry Ministry, the Science, Technology and Innovation Ministry, and the Human Resources Ministry, along with the implementing agencies, should adopt the CEF with an integrated governance, monitoring and coordination structure," he said.
He said the framework aims to guide 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 resource value.
"This integrated policy was formulated to address fragmented implementation across ministries in the past, prevent economic losses caused by the loss of valuable resources, and support the Net Zero aspiration by 2050," he said.
In other developments, Akmal said the meeting also reviewed the National Economic Resilience Framework presented by the Economic Affairs Division of the 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 discussed further at a meeting of ministry secretaries-general and heads of service chaired by the Chief Secretary to the Government," he said.
He said NEAC had examined three strategic policy priorities to drive sustainable growth and strengthen the country's economic resilience amid structural challenges and global economic uncertainties.
He said the agreed policies must be implemented in an integrated manner, particularly to improve resource-use efficiency, ensure data centre investments add value to the domestic economy, and strengthen the country's preparedness for external economic shocks.
Akmal said the Economy Ministry, as NEAC's secretariat, would 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 that delivers real benefits to the people and businesses," he added.
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