30/03/2026

MONDAY | MAR 30, 2026

4 ‘Water woes caused by mismanagement’

Planning vital to reduce impact on resources: Educator PETALING JAYA: Not all data centres place the same strain on water resources, with planning decisions such as location, design and technology playing a critical role in determining their overall impact, experts say. Universiti Teknologi Malaysia property economics and finance associate professor Dr Muhammad Najib Razali said global studies show that while data centres are often seen as “clean” digital infrastructure, their water use can vary dramatically. Water use can vary greatly, depending on the cooling design, workload intensity and geographic location, he said. “This means two data centres performing similar functions may have different water impacts depending on how and where they are built.” He added that most of the water is used to cool servers, which generate enormous heat as they run non-stop. “Thermal management systems account for a large share of operational resource demand, meaning computing expansion directly increases energy and water requirements.” In many facilities, particularly in warmer climates, cooling relies on evaporative systems, where water absorbs heat and then evaporates to release it. “Hotter climates require more intensive cooling, which directly translates into higher water demand.” He also highlighted that a data centre’s water footprint goes beyond the facility itself. Electricity generation needed to power these centres consumes large amounts of water at power plants. “This means the indirect water embedded in the energy supply could rival or even exceed onsite water use,” he said, adding that this often overlooked “energy–water nexus” is crucial when assessing sustainability. The rise of AI and high-performance computing is widening the gap. More intensive workloads place greater strain on cooling systems and energy supply. “Computing expansion, particularly driven by AI, is transforming data centres into facilities that require large and sustained water inputs.” Najib stressed that early planning is key to reducing water impact. “Planning decisions such as siting facilities in more suitable locations or adopting alternative cooling technologies could significantly reduce water demand.” He said as Malaysia develops data centre clusters in Johor, Selangor and Cyberjaya, these considerations will only grow in importance. “Early planning is far more effective than retrofitting solutions later.” – By Harith Kamal

the core. Forest cover is now lower than it was then.” Piarapakaran argued that Malaysia’s core challenge is governance, not scarcity. “It is a fact that we have sufficient surface water, but we fail miserably in managing it. This will not be an industry-driven problem but a failure of resource management.” The debate over data centres’ water consumption has intensified as Malaysia positions itself as a regional technology hub. A surge in investments over the past year, driven by global technology firms expanding cloud and AI infrastructure in Southeast Asia, has fuelled concern. Industry observers say without careful planning, such growth could strain the national grid and water supply, potentially causing disruptions. In February, amid these concerns, Prime Minister Datuk Seri Anwar Ibrahim told the Dewan Rakyat that Malaysia has restricted new data centre projects not linked to AI. He said projections by the Energy Transition and Water Transformation Ministry indicate that current capacity will remain adequate for the next one to two years. He also said longer-term solutions are being explored, including regional energy connectivity initiatives. He also highlighted the potential for integrating industries through resource recovery initiatives. “While we micromanage to mitigate, we could link up different industry groups via resource recovery efforts, which will be an added advantage to Malaysia as a manufacturing hub.” Beyond efficiency standards, he emphasised that broader water planning must continue in parallel. “Raw water security planning and policy implementation will have to be carried out continuously to support changing water demand between domestic, industry and agriculture sectors.” Ultimately, he said the goal is not to restrict growth, but to ensure it is sustainable.

“The strained water resources situation is very much linked to loss of forest cover and rising pollution. “This results in reduced raw water availability while treatment costs increase.” His comments come as scrutiny intensifies over the water footprint of data centres, which global studies show can be heavy users of water for cooling. However, he urged policymakers and the public to view future industries, including data centres, as part of a broader category of water, energy and resource intensive industries that must be managed responsibly. “The best approach is to guide these industries to operate sustainably and not shy away from them.” On concerns that industrial water use could threaten domestic supply, Piarapakaran emphasised that public access remains protected under law. “Domestic water supply is a secured priority under the Water Services Industry Act 2006. In a crisis, the immediate concern will be social stability,” he noted. He added that extreme weather events could pose a far greater threat than industry-driven demand. “We need to anticipate crises such as the 1998 El Niño that shook our water supply to

o Situation linked to loss of forest cover and rising pollution, says Association of Water and Energy Research

Ű BY HARITH KAMAL newsdesk@thesundaily.com

PETALING JAYA: Mismanaged resources, rising pollution and shrinking forests—not data centres—are fueling Malaysia’s water woes, experts warn, even as the nation races to become a regional tech hub. According to Association of Water and Energy Research president S. Piarapakaran, it is a “misconception” that large-scale digital investments alone could trigger water shortages. “Every investment, especially those that consume utilities such as water, natural gas or electricity, must be vetted and approved. “An approval process ensures the utility can meet the demand.” He stressed that the real drivers of water stress are long-standing structural issues.

Call to prioritise sustainability in tech growth PETALING JAYA: To become Southeast Asia’s tech powerhouse, Malaysia must make data centres compete on water efficiency, putting sustainability at the heart of growth, experts say. Association of Water and Energy Research president S. Piarapakaran called for stricter and evolving standards as the nation positions itself as a regional technology hub. competition between data centres, which would give room for improvement on voluntary WUE achievements.” He also called for regular policy reviews to ensure alignment with global best practices. The call comes amid a surge in data centre investments in Malaysia, driven by rising demand for cloud computing and AI.

Universiti Teknologi Malaysia property economics and finance associate professor Dr Muhammad Najib Razali said global studies show that data centres consume vast amounts of water, especially to cool servers that run 24/7. Considering these pressures, Piarapakaran emphasised the need for a targeted and industry-specific approach. “We have raised the need to micromanage mitigation to be tailor-made for different types of industries. Operational differences make it harder to manage at a macro level.”

“We have suggested to the government a pragmatic approach. Firstly, they must impose mandatory water usage efficiency (WUE) standards with a clause for future improvements,” he said. WUE measures how efficiently a system, such as a data centre or a farm, uses water, comparing consumption with the productive output generated. He argued that competition could drive data centres to improve performance. “Allow competitive or sustainability

“If we aspire to be a hub for data centres in Asean, we must find ways to make this sector more sustainable.” – By Harith Kamal Education Department orders schools to keep students hydrated KUALA NERUS: The Terengganu Education Department has as pipe leaks in schools, are addressed promptly.”

He was speaking after inspecting a school session at Sekolah Kebangsaan Bukit Tumbuh near here yesterday. Kamsah said weather conditions in Terengganu remain manageable, with maximum temperatures recorded at around 33°C. As such, there is currently no need to implement home-based teaching and learning, unlike in some areas in Kedah, he said. However, he noted that guidelines have been issued to allow flexibility in school attire during hot weather. “Students may be exempted from wearing ties or fully buttoned uniforms, and school heads and principals are given the discretion to allow sports attire or appropriate T-shirts if conditions become more extreme.” – Bernama

instructed all schools in the state to ensure sufficient drinking water is provided to students to cope with the hot weather. Its director Kamsah @ Kamal Mohamed said boarding schools must ensure 24-hour access to drinking water, including through the use of filtration systems and other facilities. He said the department’s priority is to ensure all students receive adequate hydration throughout the school day and during co-curricular activities in order to prevent heat-related illnesses. The department has instructed 507 schools to provide clean and sufficient drinking water for 258,588 students across the state. “We have also taken proactive steps by working with strategic partners to ensure any issues, such

Kamsah said weather conditions in Terengganu remain manageable, with maximum temperatures recorded at around 33°C. – BERNAMAPIC