Power, water, oversight: Malaysia's data centre boom needs stronger rules
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This opinion piece argues that Malaysia needs stricter regulations to manage the environmental impact of its rapidly expanding data center industry. It highlights concerns regarding water scarcity and energy consumption, exacerbated by climate change and the El Niño phenomenon.
Why it matters
As data centers become critical infrastructure for the global digital economy, balancing their high resource demands with local environmental sustainability is a growing challenge for developing nations.
Opinions ✕ COMMENT | Power, water, oversight: Malaysia's data centre boom needs stronger rules Thulasy Suppiah Published: Sep 7, 2026 7:00 AM | Updated: Sep 7, 2026 7:43 AM COMMENT | The devastating flood in Nepal, triggered by a massive collapse of glacier ice and rock, is a stark reminder of how quickly environmental disasters can overwhelm communities and infrastructure.
The margin for error is narrowing. The past 11 years have been the warmest on record, and every additional fraction of warming increases the risks associated with heat, drought, and water stress.
The risks associated with resource-intensive development are also becoming harder to treat as hypothetical. In parts of the United States, communities living near major data centre developments have already become embroiled in disputes over water quality.
In India, meanwhile, data centre expansion is taking place in areas where communities are already grappling with declining groundwater and water scarcity.
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