SHAH ALAM – Malaysia’s growing data centre industry is putting increasing pressure on the country’s electricity and water resources.
In her recent video, Malaysian United Democratic Alliance (MUDA) president Amira Aisya Abd Aziz raised concerns over the industry’s rising energy consumption as more data centres are expected to come online.
Data centres currently account for 9.28 per cent of Malaysia’s total electricity consumption, according to the Energy Commission (ST).
That means almost one-tenth of Malaysia’s electricity is already being consumed by data centres.
Electricity demand could rise further as more data centres are completed and become operational, particularly from November onwards.
The increase has raised concerns over whether Malaysia’s existing electricity supply can keep pace with the industry’s expansion while maintaining a reliable supply for the public.
Data centres require large amounts of electricity to power servers and other equipment, while cooling systems add significantly to their energy consumption.
These systems are essential to prevent equipment from overheating and ensure data centres operate efficiently. Malaysia’s hot climate could further increase cooling requirements and add to the industry’s overall energy demand.
As more facilities come online, additional electricity will be needed to maintain suitable temperatures and keep equipment operating efficiently.
The growing demand also comes amid concerns over Malaysia’s water resources.
Water is used in various data centre operations, particularly cooling systems, raising questions over whether the country has sufficient resources to support the industry’s continued expansion.
Malaysia has attracted significant interest from data centre investors, but the sector’s rapid growth is placing greater demands on both electricity and water supplies.
The government will therefore need to balance continued investment in the sector with ensuring the country’s resources remain sufficient and sustainable in the long term.