LETTER: THE rapid expansion of data centres in Malaysia, driven by the growing demand for Artificial Intelligence (AI), cloud computing and digital technology, presents significant economic opportunities and strengthens our ambition to become a regional digital hub.
While we welcome these investments, we must also recognise that data centres are highly resource-intensive facilities which can pose serious environmental challenges if their development and operations are not properly managed.
As Chairman of the Alliance for a Safe Community (IKATAN), I believe that Malaysia must strike the right balance between technological advancement, economic growth and environmental protection.
There are several critical concerns that the government and data centre operators must address.
First, electricity consumption and carbon emissions. Data centres operate around the clock and consume enormous amounts of electricity. Their increasing energy requirements could place additional pressure on the national electricity grid and increase carbon emissions if the energy comes predominantly from fossil fuels. Operators must therefore prioritise energy efficiency and greater reliance on renewable energy.
Second, water consumption and water security. Large quantities of water may be required to cool data centre facilities. This raises concerns about competition for water resources, particularly in areas where communities already face water supply challenges. Data centre operators should prioritise recycled and reclaimed water, rainwater harvesting and water-efficient cooling technologies rather than depending excessively on treated drinking water.
Third, environmental impact and land development. The construction of large data centre facilities may involve extensive land clearing, potentially affecting green spaces, biodiversity, natural habitats and local drainage systems. Comprehensive environmental impact assessments must be undertaken, especially for developments near residential areas and environmentally sensitive locations.
Fourth, electronic waste management. The frequent replacement of servers, batteries and other electronic equipment could generate substantial electronic waste. Operators must be held accountable for proper recycling and environmentally safe disposal.
In view of these concerns, I urge the government to consider the following measures:
- Introduce stringent environmental and sustainability requirements for all major data centre developments, including assessments of their cumulative impact on water, electricity and the environment.
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Establish mandatory sustainability standards covering energy efficiency, water consumption and carbon emissions, with regular independent audits.
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Require data centre operators to progressively increase their use of renewable energy and adopt more energy-efficient cooling technologies.
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Protect public water supplies by encouraging the use of recycled and reclaimed water for cooling operations.
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Ensure greater transparency by requiring operators to disclose their electricity and water consumption, carbon emissions and environmental performance.
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Strengthen enforcement through closer cooperation between federal, state and local authorities, with meaningful penalties for non-compliance.
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Review investment incentives and approval conditions to ensure that companies receiving government incentives demonstrate genuine commitments to sustainable development.
I also believe that the government should consider introducing a mandatory Green Data Centre Certification to ensure that operators meet measurable environmental performance standards.
Importantly, data centre development must be properly planned according to the availability of electricity, water and supporting infrastructure. We must not allow the rapid approval of projects to create additional burdens on existing public utilities or compromise the needs of local communities.
Naj_NST:
Malaysia should not measure the success of its data centre industry solely by the amount of investments attracted or the number of facilities established. We must also consider its environmental footprint, resource efficiency and contribution to sustainable development.
Digital transformation must not become an environmental burden. Economic progress must not compromise our water security, energy sustainability and quality of life.
We welcome responsible investments and technological advancement, but environmental protection and the public interest must remain non-negotiable.
Malaysia must pursue a digital future that is not only economically competitive but also environmentally responsible and sustainable for generations to come.
TAN SRI LEE LAM THYE
Chairman
Alliance for a Safe Community (IKATAN)
*The views expressed in this article are the author’s own and do not necessarily reflect those of the New Straits Times