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.<\/p>\n
The state government\u2019s 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.<\/p>\n
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.<\/p>\n
\u201cTier 1 and Tier 2 data centres can consume between 40 million and 50 million litres daily.<\/p>\n
\u201cIn comparison, Tier 3 and 4 centres only use about 200,000 litres a day, similar to a normal industrial load,\u201d he told the state assembly at Bangunan Sultan Ismail in Kota Iskandar.<\/p>\n
Mohd Jafni said the state wanted all data centres to meet higher, more sustainable and energy-efficient standards in line with international benchmarks.<\/p>\n
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.<\/p>\n
\u201cOf these, 17 are already operating, 11 are under construction and 23 were approved this year.<\/p>\n
\u201cThe projects represent a total investment value of RM182.96bil and have created 7,561 high-skilled job opportunities for local youth,\u201d he said.<\/p>\n
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.<\/p>\n He said the Johor Data Centre Development Coordination and Development Committee, established in 2024, acted as the key platform bringing together 20 strategic agencies at state and federal levels including utility companies, Land and Mines Office and Invest Johor.<\/p>\n Prior to this, Puteri Wangsa assemblyman Amira Aisya Abdul Aziz had voiced deep concern during a debate session at the state assembly, noting that the demand for water from data centres was significantly higher compared to other industries.<\/p>\n \u201cThere are 42 data centre projects approved as of the second quarter this year and I am certain this is not the end for the data centre industry in the state, as it plays an important role in Johor\u2019s economic growth.<\/p>\n \u201cHowever, the nation\u2019s water reserves are increasingly limited, especially with rapid urban development, expanding industries and the impact of climate change,\u201d she said.<\/p>\n Amira Aisya said complaints regarding water supply disruptions were rising every year.<\/p>\n \u201cThe complaints I have received in my area have increased since 2022 and this not only affects residential areas but also industrial zones.<\/p>\n \u201cEven though the state government has introduced alternative water sources for data centres, the question remains \u2013 is Johor\u2019s water supply sufficient to sustain daily living needs and other industries?\u201d she asked.<\/p>\n Amira Aisya cited international examples of similar situations in other countries.<\/p>\n \u201cIn Georgia in the US, residents suffered due to frequent water supply disruptions in residential areas after a data centre began operations, despite assurances that water supply would not be affected.<\/p>\n \u201cThis was only one data centre, imagine if there were 42. What would happen then?<\/p>\n \u201cIn Uruguay, citizens protested over concerns that data centres could disrupt water supplies to their farms,\u201d she said.<\/p>\n On a separate matter, she touched on the issue of students dropping out of school due to family financial difficulties, and urged the government to come up with long-term solutions.<\/p>\n \u201cI am aware of the RM2.8mil allocation for back-to-school aid, which is a good initiative.<\/p>\n \u201cBut a continuous strategy must be considered.\u201d<\/p>\n Amira Aisya cited as an example, the school transport assistance implemented in Negri Sembilan, known as MySchoolBus@Wilayah.<\/p>\n \u201cThese initiatives are crucial to ensure no student drops out simply due to transport issues.\u201d<\/p>\n She said more sustainable approaches needed to be considered to resolve the problem of student dropouts in Johor.<\/p>\n On another matter, Mohd Jafni said the state government did not support the proposed Urban Renewal Act (URA).<\/p>\n He said the Act overlapped with state jurisdiction on land matters, urban planning and development approvals.<\/p>\n \u201cSeveral sensitive issues such as ownership thresholds, resident rights, relocation, compensation and local development control must remain under the purview of local councils and state agencies familiar with local contexts.<\/p>\n \u201cUntil there is alignment in legal structure, authority and safeguards for residents, Johor maintains its position of not supporting the implementation of the URA in the state,\u201d he said.<\/p>\n He added that the state remained committed to rejuvenating ageing housing areas through existing mechanisms under local authorities.<\/p>\n<\/p><\/div>\n![\"Amira](\"https:\/\/apicms.thestar.com.my\/uploads\/images\/2025\/11\/26\/3640181.jpg\")
Amira Aisya expressing concerns over the nation\u2019s water reserves with demand for water use from data centres at the Johor state assembly. \u2014 Filepic<\/span><\/span><\/p>\n