Green Data Centre Certification needed to ensure sustainable growth, says Lam Thye

KUALA LUMPUR: The government should consider introducing mandatory Green Data Centre Certification to ensure that operators comply with measurable environmental performance standards, said Alliance for a Safe Community chairman Tan Sri Lee Lam Thye.

He said the rapid expansion of data centres in Malaysia, driven by growing demand for artificial intelligence (AI), cloud computing and digital technology, must not come at the expense of environmental sustainability.

“Malaysia must strike the right balance between technological advancement, economic growth and environmental protection,” he said in a statement today.

Lee called for stringent environmental requirements for major data centre developments, including assessments of their cumulative impact on electricity and water resources, as well as the surrounding environment.

He also proposed mandatory sustainability standards covering energy efficiency, water consumption and carbon emissions, supported by regular independent audits.

He said data centre operators should progressively increase their use of renewable energy and adopt more energy-efficient cooling technologies to reduce pressure on the national electricity grid.

On water security, he expressed concern that the substantial volume of water required for cooling operations could affect local communities, particularly in areas already facing water supply challenges.

He urged operators to prioritise recycled and reclaimed water, rainwater harvesting and water-efficient cooling technologies rather than relying excessively on treated drinking water.

“The construction of large data centre facilities may involve extensive land clearing, potentially affecting green spaces, biodiversity, natural habitats and local drainage systems,” he said.

In addition, he called for greater accountability in managing electronic waste generated through the replacement of servers, batteries and other equipment.

To improve transparency, Lee said data centre operators should be required to disclose their electricity and water consumption, carbon emissions and overall environmental performance.

He said the government should review investment incentives and approval conditions to ensure that companies receiving government incentives demonstrate genuine commitments to sustainable development.

He said data centre development must be planned according to the availability of electricity, water and supporting infrastructure to avoid placing additional burdens on public utilities and local communities.

“Digital transformation must not become an environmental burden. Economic progress must not compromise our water security, energy sustainability and quality of life,” he said.


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