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THE government has restricted the entry of new data centres unrelated to artificial intelligence (AI) for nearly two years to reduce pressure on the national power grid and water supply, said Prime Minister Datuk Seri Anwar Ibrahim.
Acknowledging a surge in energy and water usage following the operations of data centres, he said that projections indicate Malaysia still has the capacity to ensure sufficient supply.
“We have restricted the entry of new data centres that have nothing to do with AI. If there are benefits in terms of high technology and AI development, approvals are easier.
“So, all new applications that are not related… have already been stopped,” he said during the Ministers’ Question Time session in the Dewan Rakyat today reported by Bernama.
Anwar was replying to a supplementary question from Datuk Che Mohamad Zulkifly Jusoh (PN-Besut) regarding the energy efficiency of data centres in Malaysia and the government’s measures to ensure that the large-scale entry of data centre investments would not lead to higher electricity tariffs or disrupt supply to domestic consumers. – February 24, 2026