The Malaysian government has approved new rules requiring data center operators to source at least 30 percent of their power from renewable sources.

The new rules were announced by Deputy Prime Minister Datuk Seri Fadillah Yusof during a parliamentary session. Yusof said that the Energy Commission is currently in the process of drafting framework and guidelines on the mechanism for ensuring the 30 percent requirement is met.

As part of the new requirements, data center operators have been encouraged to deploy onsite renewable energy, with solar power highlighted in particular.

Last month, it was reported that Malaysia’s Data Centre Task Force has approved 5GW of additional capacity conditional on the 30 percent threshold. At present, the country has approximately 8.3GW of data center capacity in its interconnection pipeline.

The renewable mandate is underpinned by the country’s Corporate Renewable Energy Supply Scheme (CRESS). CRESS is a system that will offer open grid access where a third party can supply or buy electricity through the grid network system with a set system access charge.

Several major renewable energy supply agreements with data centers have already been signed under the mechanism. Most recently in June, when DayOne inked a 1.5GW renewable deal with utility TNB.

Malaysia has an existing and rapidly developing data center market, with its major data center hubs located in Cyberjaya, Johor, and Kuala Lumpur. Data center developers already active in the country include PDG, AirTrunk, Equinix, Keppel, Bridge DC, Vantage, and others.