27 Data Centres Approved, 10 in Selangor: What the 30% Local Content Rule Means for Local Factories

Key Takeaways

• The Data Centre Task Force (DCTF) has approved 27 data centre projects with an estimated investment of RM225.97 billion up to July 2026, the Digital Ministry said in a written parliamentary reply.
• Selangor has 10 of the projects, Johor 16 and Negeri Sembilan one. Only one is operating; the other 26 are still under construction.
• Every DCTF project must meet a minimum 30% local content requirement, monitored by MIDA through implementation reports submitted every six months.
• The projects are expected to create 4,053 jobs, 3,523 of them high-skilled.
• For Selangor factory owners and suppliers, the 30% rule plus 26 sites still being built means a long pipeline of work for local mechanical, electrical, fabrication and logistics firms, and more demand for workshops and warehouses near the sites.

What the ministry said

In a written reply to Datuk Dr Ahmad Yunus Hairi (PN-Kuala Langat), the Digital Ministry said 27 data centre projects with an estimated investment of RM225.97 billion have been approved under the DCTF up to July 2026. According to The Star, the count covers approvals since the task force was formed in February 2025.

The high-skilled roles are in electrical and mechanical engineering, networking, cybersecurity, and data centre operations and maintenance. The ministry also said projects approved under the DCTF are subject to a minimum local content requirement of 30%, with MIDA monitoring compliance through Data Centre Project Implementation Reports every six months. TalentCorp is developing a Data Centre Facilities Management Programme to train local staff, and operators are encouraged to work with training institutions so local companies can take part in the value chain.

Why this matters beyond the data halls

The headline number is about server buildings, but the 30% local content rule is what reaches ordinary factories. A data centre is built and run with switchgear, transformers, busways, cable trays, chillers, cooling towers, piping, steel structures, fire protection, generators and years of maintenance work. With 26 of 27 sites still under construction, much of that is still to be bought.

A recent example shows how this flows to local firms. On the same day, AWC Bhd said its subsidiary Qudotech won a RM39.70 million subcontract from Gamuda Engineering on a hyperscale data centre in Bandar Spring Hill, Port Dickson, covering the cold-water system, rainwater harvesting, water reticulation, fire hydrants and sanitary services. Works started on 14 August 2026 and are scheduled for completion on 22 October 2027.

For Selangor, 10 approved projects mean steady work for suppliers in the corridors where data centres cluster: Cyberjaya and Sepang, Dengkil, and Banting in Kuala Langat, the constituency of the MP who asked the question.

What it means for factory owners, tenants and buyers

Suppliers need space close to the sites. Switchboard assemblers, metal fabricators, mechanical contractors and spare parts distributors want workshops and warehouses within reasonable trucking distance of the projects. Semi-detached and detached factories with good power and loading access in the southern Klang Valley are the natural fit.

Power is the filter. Testing switchgear or running fabrication lines needs more than a standard terrace unit supply. Our guide to data centre space and the amperage you actually need explains the amps to MW maths, and the high-power factories in Selangor page shows where higher supply tiers are found.

Land near the corridor is being priced on that story. JPPH-registered transactions show industrial land in Kuala Langat District at RM76 psf of land over the 24 months to July 2026. Check the area's registered deals on our Kuala Langat transaction page before you accept an asking price that assumes a data centre will be your neighbour.

Landlords: tenants will ask about specs, not just rent. Expect questions on TNB supply, floor loading for heavy electrical equipment, crane provision, ceiling height for racking and whether the unit has a valid CCC and fire certificate.

Practical next steps

• Local manufacturers and contractors: register with the main contractors and operators building in Selangor, and keep your company profile, certifications and past project list ready. The 30% local content rule is checked every six months, so main contractors need local vendors they can report.
• Firms planning a new workshop: shortlist factories by power first, then by distance to the sites in Cyberjaya, Sepang, Dengkil and Banting.
• Landowners in Kuala Langat and Sepang: know your zoning, land category and power availability. Data centre and supplier enquiries both start there.
• Investors: remember that only one of the 27 is operating. Construction schedules can move, so price land on today's registered deals, not on announcements.

FAQ

How many data centres has the DCTF approved?

27 projects with an estimated investment of RM225.97 billion, up to July 2026, according to the Digital Ministry.

How many are in Selangor?

Ten. Johor has 16 and Negeri Sembilan one.

What is the local content requirement?

At least 30% local content for every project approved under the DCTF, monitored by MIDA through implementation reports submitted every six months.

How many jobs will the projects create?

4,053 jobs, including 3,523 high-skilled roles. The ministry expects Malaysians to fill 89.21% of the high-skilled positions.

What does industrial land cost in Kuala Langat?

JPPH-registered transactions put industrial land in Kuala Langat District at RM76 psf of land over the 24 months to July 2026.

FactoryHub is dedicated to helping every client find the right factory or warehouse. If you supply the data centre build-out and need a high-power workshop or warehouse in Selangor, call Peter Tan (REN 12771) at 016-666 6872 or Jason Low (PEA 1478) at 012-288 1834.