Malaysia’s data centre boom could create water crisis, warns SPAN

Malaysia’s data centre boom could create water crisis, warns SPAN

Malaysia’s National Water Services Commission (SPAN) has reportedly warned that the country’s data centre boom could create a water crisis in the longer term unless reforms on data centre water usage are enacted in the next few years.

Malaysia has been positioning itself as a major data centre hub for Southeast Asia, with everyone from established tech giants to newcomers looking to build a data centre in the country. Close to 5GW of data centre capacity has been announced via various projects.

However, data centres typically consume huge amounts of potable water for cooling. According to The Edge Malaysia, SPAN chairman Charles Santiago told a press conference on Tuesday that unchecked usage of potable water for cooling and other operational needs by data centres is unstainable and threatens Malaysia’s long-term water security.

Apart from the amount of water required – which can be millions of litres of potable water per day – the other problem for Malaysia is its ageing water infrastructure. SPAN has been calling on the government to spend more on repairing pipes and upgrading treatment plants, the report said.

Santiago said the federal government needs to establish comprehensive policies in the next three to five years that require data centres to use water efficiently and sustainably, while state governments need regulations that ensure that they have sufficient raw water supplies to support any new data centre project before approving it, the report said.

"If water operators do not have sufficient water to supply to the data centres, they should not give the permit,” Santiago said.

SPAN has also outlined a proposal to transition the data centre sector to sustainable water use, including using alternative water sources to reduce reliance on potable water. They should also be encouraged to adopt new cooling technologies designed to minimise water consumption, such as rainwater harvesting systems and water recirculation systems, the report said.

The issue of data centre water consumption has recently come under scrutiny around the world as demand for data centres increases – especially in countries that are experiencing water shortages due to droughts exacerbated by climate change.

Last year, for example, Google received approval for data centres in Uruguay and Chile – both of which have been heavily impacted by drought in recent years  – after it agreed to redesign the facilities to use air cooling instead of water cooling.

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