JOHOR BAHRU, Jan 17 — Data centre companies planning to develop facilities in Johor have been urged to invest in securing their own water sources to support their operations, including exploring the potential of groundwater, to reduce pressure on the public water supply system.
Director of the Universiti Teknologi Malaysia (UTM) Campus Sustainability Centre Prof Dr Mohd Fadhil Md Din said long-term reliance by data centres on public water sources risks increasing pressure on domestic supplies and other industries, particularly when the development of water-intensive facilities occurs in clusters.
He said data centres are capital-intensive industries with low dependence on labour, giving operators the financial capacity to bear the cost of investing in their own utility infrastructure without shifting the burden to the government or the public.
“Data centres do not require large numbers of workers. Therefore, from an economic perspective, these companies are actually able to invest in their own water infrastructure as part of their operating costs,” he told Bernama.
He said the exploration of alternative sources, such as groundwater, must be carried out in a controlled, science-based manner, subject to hydrogeological studies and continuous monitoring to prevent negative impacts on the environment and long-term water resources.
Mohd Fadhil explained that the approach is in line with the polluter pays and beneficiary pays principles, whereby parties that reap economic benefits from development should bear the costs of the additional impact on natural resources.
He said reducing reliance on the public water system would not only protect the interests of the public but also enhance the state’s resilience against unforeseen risks such as drought, extreme weather or disruptions to water treatment plant operations.
“This proposal is not meant to hinder investment, but rather to ensure that data centre development in Johor takes place in a more balanced, responsible and sustainable manner,” he said.
State Public Works, Transport, Infrastructure and Communications Committee chairman Mohamad Fazli Mohamad Salleh had previously said that a Special Technical Committee for data centre development applications had been established to assess the feasibility of each project holistically, particularly with regard to water and electricity supply requirements, utility issues, and the suitability of development zones.
Mohamad Fazli said there are currently server cooling technologies that do not require water at all, but for data centres that do require water, some have been asked to use reclaimed water, treated from sewage treatment plants to reclaimed water treatment plants, in addition to the use of treated water.
Another alternative is for data centres to collaborate with Johor Special Water (JSW) to supply alternative water that can be used by their cooling towers without affecting existing treated water sources.
Mohd Fadhil said Johor faces the risk of long-term pressure on its water supply, energy and environment if data centre developments continue to be approved one after another without clear controls on the state’s actual capacity.
He said development capacity depends on the ability of water supply and treatment systems, electricity supply and grid capacity, as well as environmental and land-use factors.
According to him, data centre development is only safe if approvals are based on comprehensive assessments by area and development clusters, rather than being evaluated separately for each project.
“I am of the view that Johor still has room to develop, but that space comes with conditions. Water and energy supplies that appear sufficient at present can become risky when disruptions occur, during extreme weather, or if development happens too rapidly,” he said.
He said over the next 10 to 20 years, the main risk will not come from a single data centre, but from the cumulative impact when multiple data centres operate simultaneously and place significant pressure on the state’s utility systems.
Mohd Fadhil explained that among the most critical impacts is data centres’ continuous dependence on water and energy, as these facilities require water for cooling and electricity supply 24 hours a day.
He said regional projections also show that data centre energy demand in Malaysia is expected to increase significantly, particularly in Johor and the Klang Valley, thereby heightening the risk of supply constraints if electricity system planning does not keep pace with project approvals.
Accordingly, he proposed that the state government set development capacity and long-term impact assessments as early approval conditions for data centre clusters, including taking into account 10- to 20-year projections, the possibility of drought, population growth, non-revenue water rates and the needs of other sectors.
Johor is expected to have 48 fully operational data centres by 2030, with 42 data centre construction projects having been approved as of the second quarter of last year. — Bernama
