02/02/2026

MONDAY | FEB 2, 2026

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Operator offers clarity on energy, water usage surge claims PETALING JAYA: The Malaysian branch of international data centre operator Equinix has responded to claims that Malaysia’s AI-fuelled data centre expansion is driving surging energy and water consumption, framing the issue instead as one of long-term planning and system-level sustainability. capacity is planned, phased and aligned with long-term demand. “From our perspective, what really matters is early planning and close collaboration with utilities regulators and energy partners. “What we tend to see first is a shift in design requirements, rather than headline performance metrics. “AI workloads typically push higher power density per rack and at the same time, they increase the importance of low-latency interconnection between data centres, clouds and networks.

centres, Cheam focused on design and planning processes, but did not provide facility-level consumption figures. “Water stewardship is built into our design standards and planning process from the very beginning, especially in markets where water availability and climate considerations are front of mind, such as Malaysia. “Where water scarcity is a concern, we prioritise reducing reliance on potable water, including avoiding evaporative cooling where appropriate, and exploring alternative water sources such as recycled or treated non-potable water.” – By FAIZ RUZMAN RM8.74 billion generated in Sabah

“We plan years ahead, expand in a demand led way, and work to ensure growth is coordinated with national energy planning, rather than reacting to short-term spikes,” he told theSun. On how AI demand changes infrastructure behaviour, Cheam said the shift appears first in how facilities are designed rather than in a single performance metric.

In a written reply after a media luncheon with journalists on Jan 27, Equinix Malaysia managing director Cheam Tat Inn said the discussion should not be framed around immediate shortages. “In Malaysia, the discussion is less about an imminent shortage and more about how

“The early signals show up in how customers design and plan their infrastructure, such as building density and connectivity from the outset, rather than in any single operational metric,” he said. When asked about water uses for data

Data centre electricity use may rise eightfold by 2030

tourism receipts KOTA KINABALU: Sabah recorded 3,793,709 visitor arrivals in 2025, generating RM8.74 billion in tourism receipts, surpassing 3.5 million visitors in 2024. State Tourism, Culture and Environment Minister Datuk Jafry Ariffin said the state is aiming for four million arrivals in 2026. “While numbers are important, our primary focus remains on delivering excellent hospitality and authentic experiences that showcase Sabah’s unique qualities. “By focussing on quality tourism, we hope to welcome even more visitors this year and the coming years, in support of Visit Malaysia and getting Sabah ready for Visit Sabah 2027,” he said in a statement. Jafry said domestic tourist arrivals to Sabah in 2025 almost surpass 2.3 million, driven by higher travel demand during the Hari Raya Aidilfitri celebrations, the state election period and school holidays. The statement said international arrivals totalled 1,498,709, representing a 2% increase above pre-pandemic levels, despite international flight connectivity not having been fully restored. Key international markets that recorded growth included China with 657,528 arrivals, followed by Singapore with 38,638, Taiwan with 34,342, the United Kingdom and Ireland with 34,704, Australia with 22,571 and Japan with 16,980. According to the statement, as of January 2026, Sabah is connected to 15 international destinations with 157 weekly flights, offering 28,966 seats. These routes include Singapore, Brunei (Bandar Seri Begawan), Taiwan (Taipei), China (Hong Kong, Guangzhou, Shenzhen, Shanghai, Beijing, Hangzhou and Fuzhou), South Korea (Seoul and Busan), the Philippines (Manila), Indonesia (Jakarta) and Vietnam (Ho Chi Minh City). Domestically, Sabah is connected to 13 destinations, namely Kuala Lumpur, Subang, Johor Bahru, Penang, Kota Bharu, Labuan, Kuching, Miri, Sibu, Bintulu, Mulu, Limbang and Lawas. The statement added that cruise tourism also recorded growth, with 23 cruise ships bringing in 24,634 passengers, of which 19 vessels docked at Kota Kinabalu Port while four called at Sandakan Port. – Bernama

o Water and energy research group estimates consumption could reach 68TWh from current average of 8.5TWh

Ű BY FAIZ RUZMAN newsdesk@thesundaily.com

PETALING JAYA: Malaysia’s data centre electricity use could increase nearly eightfold by the end of 2030, according to projections cited by the Association of Water and Energy Research Malaysia (Awer), as demands for artificial intelligence (AI)-driven infrastructure expands. Awer president Piarapakaran Subramaniam said current national data centre electricity use is estimated at about 8.5 terawatt-hours (TWh) in 2024, with demand projected to reach around 68 TWh by 2030. A TWh is a unit used to measure large-scale electricity use at industry or national level, with one TWh equal to one billion kilowatt-hours of electricity. However, public discussion often assumes data centres operate at full power all the time, which is not how facilities run in reality, he said. “It’s a business decision. It makes no sense to run it at 1,000 megawatts (MW) capacity when the operating demand is maybe 250MW. So, the demand increase is a progressive increase. “Based on available data, in 2024, data centres used about 8.5 TWh and this demand is projected to reach 68 TWh by 2030 subject to efficiency and actual operation capacity,” he told theSun. To illustrate the scale of electricity use, he gave an example of a very large data centre campus and how consumption changes depending on how heavily it is used. “For example, if a 1,000MW data centre (known as gigawatt campus) operates at full capacity for 24 hours, annual consumption is

Malaysia’s data centre electricity use could rise sharply as AI infrastructure demand grows. – AI GENERATED IMAGE BY THESUN

He added that WUE is a measure of how efficiently a data centre uses water for cooling, with lower figures indicating less water consumed per unit of computing power. Piarapakaran said states with smaller spare capacity in their water systems would feel more pressure, as he cited examples such as the Klang Valley, Johor and Negeri Sembilan. He added that approval processes are meant to ensure supply is secured before projects proceed. However, Piarapakaran also said Malaysia’s reliance on imported fuels such as coal and liquefied natural gas means energy supply is still exposed to global risks. “The other concern that we need to keep in mind is that energy resources will be increasingly attached to foreign risk as we are a net importer of coal, and natural gas is still shipped in. “Trade relationship, trade route risk and unforeseen global energy resource demand risks are still there,” he said. Rider mechanism for low-voltage commercial and industrial users that consume electricity outside peak hours. In efforts to support strategic sectors, a new 10% discount is also being extended to the agriculture, aquaculture and fisheries sectors to ensure stability in the food supply chain, Bernama reported. Detailed information on the new tariff schedule and estimated monthly bills can be obtained via the company’s official website at www.sesb.com.my/tariff, including the use of the electricity bill calculator provided.

about 8.76TWh. “If it operates at 20% capacity, then the consumption is about 1.75TWh annually,” he said, adding that efficiency improvements and cooling technology advances could reduce energy use further. On water, Piarapakaran said cooling needs can vary significantly depending on design and technology. He said water use is measured in million litres per day (MLD), a scale used for industrial or municipal supply planning. “Depending on the technology deployed, water usage may vary between 40 and 200MLD for a 1,000MW capacity data centre. “By ensuring Water Usage Effectiveness (WUE) is sustainable, we can drive the water usage down. Malaysia is using 2.2 as a WUE benchmark. “Based on some operating examples in the world, WUE of 1.8 is already achievable,” Piarapakaran said.

New power tariff for Sabah, Labuan takes effect KOTA KINABALU: New electricity tariffs in Sabah and the Federal Territory of Labuan took effect yesterday, involving an adjustment of the average basic rate to 39.7 sen per kilowatt hour (kWh) from the previous 34.52 sen per kWh. 500kWh per month, with a projected minimum bill increase of between RM0 and RM24, including for grocery shops and small businesses.

In addition, various rebates and discounts have been provided to reduce the impact of the new tariff implementation, including a RM40 monthly rebate for hardcore poor heads of households through the e-Kasih system. Sabah Electricity is also offering a 10% discount to welfare homes, houses of worship and registered educational institutions, as well as a 20% discount through the Off-Peak Tariff

According to an infographic issued by Sabah Electricity Sdn Bhd (Sabah Electricity), about 85% of domestic consumers with electricity usage of up to 600kWh per month will only experience a minimum bill increase of up to RM27 or none at all, depending on usage. For small commercial users, the protected electricity usage block will continue up to