Data Centre Planning Guidelines approved by Cabinet, says Nga

• Minister Nga Kor Ming said the guidelines are designed to standardise and streamline the application and planning approval process for stakeholders.
• He said the guidelines also support the ease of doing business initiative, complement the overall data centre industry ecosystem, and serve as a reference for those involved in data centre development.

CYBERJAYA (Oct 10): The Cabinet, at a meeting on Tuesday, approved the adoption of the Data Centre Planning Guidelines (GPP) developed by the Ministry of Housing and Local Government through the Town and Country Planning Department (PLANMalaysia).

Minister Nga Kor Ming (pictured) said the guidelines are designed to standardise and streamline the application and planning approval process for stakeholders.

He said the guidelines also support the ease of doing business initiative, complement the overall data centre industry ecosystem, and serve as a reference for those involved in data centre development.

"Overall, the GPP covers site planning guidelines, and outlines the procedures for development plan applications, including planning permission and building plans, and applies to data centre developments with a capacity exceeding one megavolt ampere, whether in new areas or existing buildings.

"With the launch of the data centre GPP, we intend to strengthen the development of digital infrastructure, and support the data centre development ecosystem through the construction of data centres in more strategic locations according to the designated land use zones.

“This is to ensure the distribution of resources for domestic needs is not affected," he told reporters after launching the GPP here on Thursday.

The guidelines include several proactive measures, such as planning controls by local authorities, where data centres will only be permitted in commercial and industrial land use zones, and buffer zones will be required for data centres located near residential areas to prevent noise disturbances to the local community.

Nga said the preparation of the guidelines is also in line with Malaysia's strategy of providing a strong digital infrastructure to attract more foreign investors, especially when the country has become an investment site for giant companies such as Amazon, Google and Oracle.

"In the next four to five years, Malaysia is expected to become the largest data centre hub in Asean, with an inventory of energy needs of around four gigawatts," he said.

According to Nga, the guidelines will be tabled at the 84th meeting of the National Council for Local Government Authorities scheduled for Nov 14.

The guideline book will be distributed to 156 local authorities from Thursday, and it is available here.

For the record, as of May, 32 data centres were in operation, and 19 data centres were under construction in Malaysia.

The main focus areas of data centres in Malaysia are Cyberjaya, Kuala Lumpur and Johor.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!