JOHOR will stop approving applications for Tier 1 and Tier 2 data centres due to their massive water consumption, which can reach up to 50 million litres a day.
The state government’s move comes as rising concerns over water supply strain due to the rapid expansion of the data centre industry were voiced in the state assembly.
State housing and local government committee chairman Datuk Mohd Jafni Md Shukor said the move was necessary as lower-tier centres used up to 200 times more water than Tier 3 and Tier 4 facilities.
“Tier 1 and Tier 2 data centres can consume between 40 million and 50 million litres daily.
“In comparison, Tier 3 and 4 centres only use about 200,000 litres a day, similar to a normal industrial load,” he told the state assembly at Bangunan Sultan Ismail in Kota Iskandar.
Mohd Jafni said the state wanted all data centres to meet higher, more sustainable and energy-efficient standards in line with international benchmarks.
As of November 2025, Johor had approved 51 data centre projects, making the state one of the fastest-growing digital hubs in the region, he added.
“Of these, 17 are already operating, 11 are under construction and 23 were approved this year.
“The projects represent a total investment value of RM182.96bil and have created 7,561 high-skilled job opportunities for local youth,” he said.
Mohd Jafni said each data centre application went through five stages of scrutiny, including evaluations on water and electricity usage, Internet cable readiness, technology requirements, alternative water sources and green technology considerations.






