Govt reviewing water, power supply needs of data centres
Deputy energy minister says there are some data centres that aren't yielding many benefits, which should be reviewed as well.
The Malaysian government is examining the electricity and water demands of data centres to prevent a strain on residents' supplies, particularly if investments do not benefit the country. Deputy Energy Transition and Water Transformation Minister Abdul Rahman Mohamad stated that the review aims to ensure the power demand of data centres aligns with actual consumption and avoid overcapacity, which could burden consumers.
Rahman mentioned that some data centres have requested higher capacities than necessary, leading to unused resources. There are concerns that the surge in data centre investments could exceed 5,000 MW by 2035, with Tenaga Nasional Bhd receiving applications for 11,000 MW. Deputy Prime Minister Fadillah Yusof had previously suggested that data centre operators may face fines for requesting excess water or power.
The government aims to avoid "phantom demand," where businesses reserve large amounts of resources but do not fully utilize them. Rahman proposed that data centre operators set up independent power producers to reduce the strain on the national grid, while balancing investors' needs and domestic users' interests.
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- Govt reviewing water, power supply needs of data centres freemalaysiatoday.com