From 6 to 10 April 2026, the UNEP-United for Efficiency (U4E) initiative conducted an in-person mission to Malaysia, engaging with key federal and state-level stakeholders across two strategic areas: sustainable cooling through Minimum Energy Performance Standards (MEPS) and sustainable data centre development. The mission confirmed strong momentum for U4E support and highlighted Malaysia’s growing ambition to position itself as a leader in energy efficiency within Southeast Asia.
Advancing Sustainable Cooling: MEPS for Room Air Conditioners and Commercial Refrigeration
On 8 April 2026, U4E met with the Energy Commission of Malaysia at its headquarters in Putrajaya, alongside representatives from the Department of Energy and the World Bank. The session covered two key regulatory developments.
The revised MEPS for Room Air Conditioners (RACs) is nearing completion and is fully aligned with the U4E Model Regulation Guidelines, building on Malaysia’s landmark Energy Efficiency and Conservation Act (EECA), which entered into force on 1 January 2025.
In parallel, a multi-stakeholder awareness-raising campaign is underway to promote the adoption of energy-efficient RACs among key audience segments, including youth, first-time home buyers, and household decision-makers.
On commercial refrigeration, the development of MEPS for CRE is progressing according to a structured regulatory roadmap with several planned key activities including market assessment, cost–benefit analysis, testing standards, and industry engagement sessions. The scope is also expected to incorporate refrigerant considerations, including HFC phase-down in line with Malaysia’s ratification of the Kigali Amendment.
Supporting Sustainable Data Centre Development
Malaysia is experiencing rapid growth in its data centre sector, driven by digitalisation, AI expansion, and increasing regional demand, particularly as neighbouring Singapore faces a moratorium on new developments.
Discussion with the Ministry of Digital and the National Data Centre Task Force on strengthening sustainable data centre policies and development.
The mission included engagements at both national and state levels. At the federal level, the Ministry of Digital is leading the establishment of a National Data Centre Task Force and the development of a National Data Centre Framework. Initial discussions highlighted opportunities for U4E to provide technical input, particularly drawing on the UNEP-U4E Sustainable Procurement Guidelines for Data Centres and Servers, to strengthen alignment on energy efficiency metrics.
At the state level, both Selangor and Johor State government expressed strong interest in collaborating with U4E on sustainable data centre development. Selangor has introduced a local economic development policy requiring a mandatory 30% local content contribution for new data centre projects. Johor, rapidly emerging as a regional hub, is enhancing its existing data centre guideline with a stronger focus on sustainability metrics such as PUE, WUE, and carbon considerations.
The engagement with Johor also garnered media attention, with StarMetro reporting on 20 April 2026 on the state’s ambitions to become a leader in the digital and AI ecosystem — highlighting U4E’s role in supporting sustainable data centre development.
A site visit to AirTrunk’s hyperscale facility in Johor further underscored the importance of structured government–industry dialogue, with U4E well positioned to act as a neutral facilitator — including through the potential establishment of a Public–Private Working Group on sustainable data centres.
Site visit and discussion with AirTrunk Malaysia in Johor on sustainable data centre development and operational efficiency.
U4E’s Strategic Role: A Platform for Technical Support and Dialogue
The mission reinforced U4E’s strategic positioning across two complementary roles: as a trusted technical advisor from international perspective supporting the development and implementation of energy efficiency frameworks, and as a neutral convenor enabling structured dialogue between government and industry stakeholders.
Through its established tools, including the U4E Model Regulation Guidelines and the Sustainable Procurement Guidelines for Data Centres, U4E is well placed to support Malaysia’s transition toward energy-efficient cooling systems and low-carbon digital infrastructure.
Malaysia presents a strong opportunity for U4E to support scalable, regionally replicable approaches that advance both sustainable cooling and sustainable data centre development across Southeast Asia.
For more information on U4E’s work in Malaysia, contact: Zafe Fazilah Abu Bakar (zafe.fazilah@un.org) or Saikiran Kasamsetty (saikiran.kasamsetty@un.org).