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Malaysia MIDA Guideline for Sustainable Development of Data Centre (DESAC incentive conditions)

In effectMalaysia (federal)Guidance

MIDA guideline that sets the sustainability conditions for data centre applications under the Digital Ecosystem Acceleration (DESAC) tax incentive scheme. Applicants declare design PUE (ISO/IEC 30134-2), CUE (ISO/IEC 30134-8) and WUE (ISO/IEC 30134-9). Design PUE limits are 1.4 or lower for hyperscale sites above 21.25 MW at 132 kV and above, 1.6 or lower for post-2020 purpose-built colocation above 21.25 MW and 1.7 or lower for smaller and older categories. Recommended design WUE is 2.2 m3/MWh or lower, with actual WUE disclosed annually and a target to improve toward 2.0 m3/MWh over ten years. New sites in Peninsular Malaysia should avoid areas with a water stress index of 0.8 or more. Applications received for DESAC incentives until 31 December 2027 are subject to the guideline.

Current status

Incentive-eligibility guideline, not a general licensing law. Applies to DESAC applications. PDF metadata shows it was created September 2024 and it was posted in MIDA uploads for December 2024. Exact announcement date not verified.

Who it applies to

Owners, developers or operators of data centres applying for DESAC tax incentives. Categories by supply voltage and capacity (0.85 MW to above 21.25 MW). Water-stress siting test applies to Peninsular Malaysia only.

Exceptions: Baseline PUE values to be established and design targets validated later. Grid emission factors given by region (Peninsular 0.758, Sabah 0.425, Sarawak 0.198 GgCO2/GWh, 2021 data).

What it means for cooling and power

Incentive-seeking projects in Johor and Greater Kuala Lumpur need documented design PUE and WUE, which favours low-water heat rejection, closed-loop and liquid cooling designs and water-recycling systems. The capacity bands are electrical supply bands in the guideline and should not be read as IT load.

Editorial: business implications, not legal advice.

Upcoming dates

  1. 31 Dec 2027: Applications received by MIDA under DESAC until this date are subject to the guideline mida.gov.my (opens in a new tab)

Markets

Technologies

Lifecycle

  1. Proposed or announcedDec 2024
  2. Consultationdate not recorded
  3. AdoptedDec 2024
  4. In effectdate not recorded

Incentive-eligibility guideline, not a general licensing law. Applies to DESAC applications. PDF metadata shows it was created September 2024 and it was posted in MIDA uploads for December 2024. Exact announcement date not verified.

Sources (1), last checked 18 Oct 2026
  1. Guideline for Sustainable Development of Data Centre (opens in a new tab), Malaysian Investment Development Authority (MIDA), published 2024-12, accessed 18 Oct 2026

Last checked 18 Oct 2026 by CoolPower Index research (automated, sourced). Report a correction.

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