KUALA LUMPUR, February 25 — Prime Minister Anwar Ibrahim announced that Malaysia has halted approvals for new “basic” data centres unrelated to artificial intelligence (AI) for nearly two years to protect national electricity and water resources.
Speaking during Prime Minister’s Question Time in the Dewan Rakyat, he said projects that merely seek to benefit from lower utility costs have been stopped, while applications offering high-technology and AI value continue to receive approval.
Anwar assured Parliament that, based on projections by the Energy Ministry, the national grid has sufficient capacity to support new AI-related investments over the next one to two years. Addressing concerns about rising energy consumption and environmental impact.
He said the government is planning long-term solutions, including the ASEAN Energy Grid linking Vietnam to Peninsular Malaysia and Singapore, as well as tapping additional power from Sarawak to the Peninsula.
While proposals were raised to impose carbon footprint ceilings under the forthcoming AI Governance Bill, Anwar indicated such environmental safeguards may be better managed under existing energy laws and regulatory frameworks.
Stressing that the government is taking the surge in energy and water usage seriously to prevent overloading the national grid.
