World · Malaysia Bureau
Malaysia mandates 30% renewable energy for data centre operators
Malaysia is tightening environmental standards for data centres, requiring operators to source at least 30 per cent of their energy from renewable sources. The Energy Commission is developing guidelines to enforce the new sustainability framework.
LSN Malaysia ·
The Malaysian government is moving to curb energy consumption in the data centre sector by imposing a mandatory 30 per cent renewable energy requirement on operators, according to energy sector officials. The directive aims to address the growing environmental footprint of data centres, which have expanded rapidly across Malaysia in recent years to support regional cloud computing demand. The Energy Commission is currently drafting comprehensive guidelines and a regulatory framework to implement the renewable energy obligation, ensuring compliance across the industry. Operators will need to demonstrate how they plan to meet the threshold through solar installations, power purchase agreements with renewable energy providers, or other clean energy sources. The requirement is expected to accelerate Malaysia's transition towards its broader renewable energy goals while positioning the country as a more sustainable hub for regional data centre operations. Industry stakeholders have been engaged in the consultation process as regulators work to balance environmental objectives with the sector's operational viability.