Experts warn that deforestation, pollution and poor governance, not tech investments, are the root causes of Malaysia’s water stress.
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.
“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 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.
