Data centres in Malaysia: how many jobs, what they pay and how much power they use
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Data centres are buildings full of servers that run cloud services and AI, and Malaysia is approving a lot of them. In the first half of 2026 alone, the country approved RM95.8 billion of data centre and cloud projects, close to 44% of all approved investment, according to MIDA (the Malaysian Investment Development Authority).
Jobs and pay
On 5 November 2025, the Deputy Minister of Investment, Trade and Industry told Parliament that 25 data centre projects with the DSEC incentive (the Digital Ecosystem Acceleration Scheme), worth RM144.4 billion, are expected to create 1,429 new jobs.
On 7 July 2026, the Minister of Digital told Parliament that entry posts pay RM3,000 to RM7,000 a month, and senior posts can reach RM10,000 to RM30,000. He cited a report on data centre economics and said this is higher than the 2024 national median wage of about RM2,790.
Who owns them
Across all approved investment in the first half of 2026, 58.1% was foreign money. That share covers every sector, not data centres alone.
Power and water
The same answer to Parliament in November 2025 covered power and water. As of June 2025, data centres used 603 megawatts of electricity, against a declared maximum demand (the most power operators said they would need) of 1,276 megawatts. MIDA projects demand to pass 5,000 megawatts by 2035.
The same answer called their water use under control. In Johor, data centres used 9.07 million litres a day, about 0.6% of the state’s total. In Selangor, Kuala Lumpur and Putrajaya, the average was 0.47 million litres a day, about 0.12% of total use.
In Johor, the state planning guideline (PLANMalaysia Johor, April 2024) says TNB must review and approve each data centre’s power supply before building goes ahead. If you’re buying near a planned site, the Local Plan (the local council’s land-use map) is worth a look.
What they add in jobs
The 1,429 expected jobs from RM144.4 billion work out to about 10 jobs for each RM1 billion. Across all sectors in 2025, the March 2026 investment figures give about 574 expected jobs for each RM1 billion. The Johor guideline, citing a 2020 World Bank report, puts it at 400 to 600 job opportunities per RM1 billion, a wider estimate that counts jobs differently.
Frequently asked questions
How much water and electricity do data centres use?
Parliament was told on 5 November 2025 that data centres across Malaysia used 603 megawatts of electricity as of June 2025, against a declared maximum demand (the most power the operators declared they would need) of 1,276 megawatts. In Johor they used 9.07 million litres of water a day, about 0.6% of the state's total. In Selangor, Kuala Lumpur and Putrajaya they used 0.47 million litres a day, about 0.12%.
Do data centres create many jobs?
Parliament was told on 5 November 2025 that 25 data centre projects approved for the DSEC incentive, worth RM144.4 billion, were expected to create 1,429 new jobs. That works out to about 10 new jobs for each RM1 billion invested. Across all sectors in 2025, MIDA's March 2026 figures work out to about 574 expected jobs for each RM1 billion.
Is it okay to live near a data centre?
Before you buy, check how far the home is from the site and what the Local Plan (the local council's land-use map) marks the land around it for. The Johor planning guideline says data centres are typically restricted to industrial or commercial zones in the Local Plan, and buffer zones (strips of land kept between the data centre and its neighbours) may be required.
Where are data centres being built in Malaysia?
MIDA says data centre operators are mainly in Greater Kuala Lumpur and Johor. In Johor, the planning guideline says data centres are typically restricted to industrial or commercial zones, and it encourages sites within 100 metres of transmission lines or main intake substations.
Official sources (6)
- MIDA, Malaysia Breaks Investment Record with RM426.7 Billion in 2025 (6 Mar 2026) (opens in a new tab)
- MIDA, Malaysia Secures RM218.5 Billion in Approved Investments in 1H 2026 (28 Aug 2026) (opens in a new tab)
- MIDA, MIDA Charts Next Phase for Malaysia's Data Centre Sector (14 Sep 2026) (opens in a new tab)
- Dewan Rakyat Hansard, 5 November 2025 (opens in a new tab)
- PLANMalaysia Johor, Johor State Data Centre Development Planning Guidelines (April 2024) (opens in a new tab)
- Dewan Rakyat Hansard, 7 July 2026 (opens in a new tab)
