Data centres face water and power curbs to protect public supply
DATA centre projects in areas with low water reserve margins will not be considered, as the government tightens water and electricity requirements to prevent growing industrial demand from undermining public supply. Deputy Prime Minister II Datuk Ser...
The Malaysian government has implemented new regulations for data centre projects in areas with low water and electricity reserves to prevent strain on public supplies. Deputy Prime Minister II Datuk Seri Fadillah Yusof stated that data centres must have on-site water storage equivalent to at least two days' consumption and meet a minimum 30% renewable energy requirement. These water and electricity requirements aim to reduce pressure on public supplies during disruptions.
The Water Supply Guidelines for Data Centre Development, overseen by the National Water Services Commission (SPAN), mandate that developers explore alternative cooling methods, such as recycled and reclaimed water and rainwater harvesting. For electricity, each data centre power supply application is assessed for projected demand, transmission networks, and infrastructure investment to maintain grid stability and reserves.
Developers must secure at least 30% of their energy capacity from renewable sources through schemes like the Corporate Renewable Energy Supply Scheme (CRESS) or Solar for Self-Consumption (SELCO).
In case of supply disruptions, data centres are required to have backup generators and emergency response plans, which may include tanker deliveries, static water tanks, inter-state supply assistance, and scheduled rationing or restrictions if conditions become critical. The government will continue monitoring the sector's growth and updating planning accordingly.
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