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Selangor
Nation / PlaceMY

Selangor

Malaysian state applying a local-content requirement to data centres.

Selangor is Malaysia's most populous state, surrounding Kuala Lumpur. In July 2026 it set a 30% local-content rule for new data centres, a different admission test from neighbouring Johor's water-based approach.

Last refreshed: 4 August 2026 · Appears in 1 active topic

Key Question

Why is Selangor competing with Johor over how to regulate data centres?

Timeline for Selangor

#12 24 Jul

Johor operator says it uses no fresh water

Data Centres: Boom and Backlash
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Background

Selangor is a Malaysian state surrounding the federal capital Kuala Lumpur, and is Malaysia's most populous and industrialised state.

In July 2026 executive councillor Ng Sze HAN set out Selangor's approach to data-centre approvals: a 30% local-content requirement plus energy and water efficiency vetting, a different regulatory test from neighbouring Johor's water-tiering system .

Johor and Selangor are now competing for the same wave of data-centre investment with different admission tests, one built around water use and the other around local economic content.

Common Questions
Where is Selangor?
A Malaysian state surrounding the federal capital Kuala Lumpur; Malaysia's most populous and industrialised state.Source: Reuters, via The Star
What is Selangor's data-centre policy?
A 30% local-content requirement plus energy and water efficiency vetting, set out by executive councillor Ng Sze HAN in July 2026.Source: Reuters, via The Star
How does Selangor differ from Johor on data centres?
Selangor applies a local-content and efficiency test; Johor uses water-tiering to limit approvals.Source: Reuters, via The Star