Malaysia Approves RM225.97 Billion in Data Centre Projects, With 4,053 Jobs Forecast

Most Projects Are Still Under Construction

Malaysia approved 27 data centre projects with an estimated investment value of RM225.97 billion between February 2025 and July 2026, with 26 still under construction and one operating, according to a Digital Ministry parliamentary reply disclosed on October 15, 2026. The projects are forecast to create 4,053 jobs, including 3,523 requiring advanced technical skills.

Johor accounts for 16 of the approvals, followed by Selangor with 10 and Negeri Sembilan with one. Each project must meet a minimum requirement of 30% local content, giving Malaysian businesses a route into an industry whose largest spending commitments include equipment, electricity infrastructure and cooling systems.

The figures describe a large investment pipeline with much of its employment and business activity still ahead. The ministry expects Malaysians to fill 89.21% of the highly skilled positions, while TalentCorp Malaysia is developing a programme to prepare local participants for operations and maintenance work.

The parliamentary answer brings together three measures that matter to the public: how much investment has been approved, how many jobs are expected and how local companies can participate. Delivering those benefits depends on the projects progressing from construction into operation and on workers and suppliers being ready to take part.

What the Parliamentary Answer Covers

The Digital Ministry was responding to Datuk Dr Ahmad Yunus Hairi, the Perikatan Nasional MP for Kuala Langat. He asked about approvals under the Data Centre Task Force, their distribution across states and the expected benefits for Malaysians, including employment, participation by small and medium enterprises, and the transfer of technology and knowledge.

Digital Minister Gobind Singh Deo said Malaysia had approved 84 data centre projects nationwide by July 2026. The 27 projects approved under the task force are included in that national total, accounting for about 32% of all approved projects.

The key dates and project stages are:

• February 2025: The Data Centre Task Force was established.
• February 2025 to July 2026: The task force approved 27 projects with an estimated investment value of RM225.97 billion.
• By July 2026: Nationwide approvals reached 84 projects, including the 27 under the task force.
• October 15, 2026: Details of the parliamentary reply were published, listing one task force project as operational and 26 as under construction.

Johor Holds Nearly Three in Five Approvals

Johor's 16 projects represent about 59% of the task force approvals. Selangor's 10 account for roughly 37%, while Negeri Sembilan has the remaining project. Together, Johor and Selangor host 26 of the 27 projects.

That concentration makes the delivery of infrastructure and local business participation particularly consequential in those two states. Construction creates demand for contractors and suppliers, while completed facilities need continuing technical support, maintenance and reliable utilities.

The operational centre was not identified, and the reply gave no completion dates for the other 26 projects. It also provided no breakdown of investment values or projected employment by state, leaving the geographic distribution of the expected spending and jobs unspecified.

What the Jobs Forecast Means for Malaysians

Highly skilled roles make up about 87% of the 4,053 forecast jobs. The ministry listed electrical and mechanical engineering, networking, cybersecurity, and data centre operations and maintenance among the fields involved. The remaining 530 positions fall outside the highly skilled category described in the reply.

Gobind, the digital minister, set out the expected Malaysian share of the skilled workforce in his written parliamentary answer:

Of these, 89.21 per cent of the highly skilled positions are expected to be filled by Malaysians,

Applying that percentage to 3,523 positions gives approximately 3,143 highly skilled jobs for Malaysians. This is a forecast for the projects, while the Human Resources Ministry has not supplied a count of jobs already created.

The roles cover different parts of keeping digital services running. Network specialists manage connections between computer systems. Cybersecurity staff protect systems and information. Electrical and mechanical teams maintain the power and cooling equipment that servers need to operate continuously.

Why Large Investments Produce Fewer Jobs Than Some Expect

Human Resources Minister R Ramanan addressed the relationship between investment and employment in another written parliamentary reply. He said the number of jobs created for Malaysians was not directly proportional to the investment value announced for data centres.

Ramanan described data centres as:

capital-intensive investments

Much of the spending, he explained, goes into high quality equipment, electrical infrastructure and cooling systems. In plain terms, these facilities require expensive machinery and supporting systems, with a smaller workforce of people who have specialised technical skills.

The two ministries therefore describe different parts of the same economic picture. The Digital Ministry sets out the expected employment from a defined group of projects. The Human Resources Ministry explains why the investment total can be very large compared with the number of workers employed.

For Malaysians, the practical value extends beyond the number of direct jobs. Pay, access to training, contracts for local businesses and opportunities to acquire technical knowledge are also central to the benefits the government says it wants to secure.

A 30% Local Content Rule Opens a Supplier Route

Projects approved under the task force must have at least 30% local content. The requirement is intended to encourage Malaysian companies to participate in the data centre industry and its related supply chains.

The Malaysian Investment Development Authority, known as MIDA, monitors compliance through Data Centre Project Implementation Reports. Operators must submit these reports every six months, creating a recurring reporting obligation as projects are implemented.

The ministry did not explain how the local content percentage is calculated or identify which purchases qualify. That detail matters to suppliers because eligibility determines which goods and services can contribute towards meeting the requirement.

The Digital Ministry described the potential business benefits in its written reply:

The development of data centres can potentially stimulate the growth of the domestic digital ecosystem and related supply chains,

Operators are also encouraged to develop local suppliers and work with education and training institutions. For smaller Malaysian businesses, participation could involve gaining the capability to meet operators' requirements and building continuing commercial relationships as facilities move into operation.

Training Is Being Prepared for Operations Work

TalentCorp Malaysia is developing a Data Centre Facilities Management Programme to train local participants in operations and maintenance. These are continuing responsibilities once construction ends and a facility begins serving customers.

Facilities management in a data centre involves looking after the physical systems that support computing equipment. Power and cooling must be managed together: servers need electricity to work and cooling to prevent excessive heat from disrupting their operation.

The ministry also encourages industrial training and closer cooperation between operators and educational institutions. Such arrangements can connect classroom learning with the equipment and working practices used in actual facilities.

Talent development and technology transfer are linked in the government's stated goals. Training gives people the skills to perform particular jobs, while technology transfer involves Malaysian workers and companies acquiring knowledge they can continue using. The reply did not give a launch date, enrolment target or course duration for the TalentCorp programme.

Electricity and Water Are Part of the Investment Test

Another parliamentary disclosure said 45 operational facilities had a combined maximum electricity load of 6 gigawatts, or GW, and were consuming about 1.37 GW as of August. Actual consumption was therefore about 23% of the stated maximum load.

A gigawatt is a measure of power. The maximum load describes the combined upper demand stated for those facilities, while the consumption figure describes their reported electricity use at that time. Electricity planning has to accommodate operating demand and the additional demand that may arrive as facilities use more of their capacity.

Deputy Minister Abdul Rahman Mohamad proposed that operators consider arranging their own power generation and water supplies. His proposal came alongside concerns about the resources required by the expanding industry, including water used by cooling systems.

The figures for 45 operational facilities describe a wider group than the 27 projects approved under the task force, of which only one was listed as operating. They give a view of the sector's electricity demand alongside the construction pipeline described by the Digital Ministry.

Johor's Planned Energy Project Adds Another Piece

UEM Lestra has a planned hybrid energy project with a capacity of 1 GW intended to support Johor's electricity supply. The project could add generation within a state that holds the largest share of the task force's data centre approvals and reduce its dependence on electricity supplied from other states.

The energy proposal and the data centre approvals address connected needs. New facilities require reliable electricity, while electricity suppliers need to prepare for demand that develops as construction finishes and operations expand.

The government's monitoring commitments bring the story back to delivery. For workers, progress means jobs becoming available and suitable training being accessible. For Malaysian businesses, it means a chance to win work and gain technical capability. For the states hosting these facilities, it also means having electricity and water arrangements that can support their operation.

RM225.97 billion is the estimated investment value attached to the approvals. The next practical measures of progress will be completed facilities, recruitment, supplier participation and compliance with the local content requirement through the reports submitted to MIDA.

Key Points

• Malaysia approved 27 data centre projects worth an estimated RM225.97 billion under the Data Centre Task Force between February 2025 and July 2026.
• Johor has 16 projects, Selangor has 10 and Negeri Sembilan has one. One centre is operating and 26 are under construction.
• The projects are forecast to create 4,053 jobs, including 3,523 highly skilled positions. Malaysians are expected to fill 89.21% of those skilled roles.
• Projects must meet a minimum 30% local content requirement, with implementation reports submitted to MIDA every six months.
• TalentCorp is developing training for operations and maintenance, while electricity supply, water use and local supplier participation remain central to delivering the intended benefits.