KUALA LUMPUR, August 16 — Sahabat Alam Malaysia (SAM) has voiced significant concerns about the rapid expansion of data centres in Malaysia, particularly in Johor, which is now the largest data centre market in the country. As global demand for data services and technologies like AI surges, Malaysia’s strategic advantages, such as low electricity costs and abundant land, have attracted numerous investments. However, SAM warns that this boom may come at a severe environmental cost. Data centres consume vast amounts of electricity and water, potentially straining local resources and increasing carbon emissions.

SAM highlights that while data centres promise economic benefits and job creation, the actual environmental and social impacts need urgent scrutiny. With projections showing that data centres could demand over 5,000 megawatts of electricity by 2035 and consume enormous amounts of water, SAM urges the Malaysian government to implement robust safeguards and conduct comprehensive impact assessments. This cautionary approach echoes Singapore’s recent moratorium on new data centres due to similar concerns, emphasizing the need for sustainable development in Malaysia’s burgeoning tech infrastructure sector.