Water concerns in Malaysian state of Johor lead to restrictions on Tier 1 and Tier 2 data centers, only allowing energy-efficient builds

The rapid growth of data centers around the world has sparked significant environmental debates. While electricity consumption is the most visible concern, the impact on local water supplies can be equally severe, as seen in rural Georgia.

Authorities are paying attention globally. In Malaysia, the state of Johor has reportedly halted all proposals for Tier 1 and Tier 2 data centers. Johor, known as the countrys tech hub, has drawn major international investment and hosts numerous data centers, creating thousands of highly specialized jobs. Yet, due to the high water demand, officials now insist that only Tier 3 or Tier 4 facilities can be approved.

Government spokesperson Amira Aisya highlighted the situation in Georgia as a cautionary example. Other regions, such as Las Cenizas in Mexico, have faced similar challenges with water usage for data centers.

Data centers are categorized into four tiers: the lower tiers operate with single cooling and power paths, whereas the upper tiers utilize multiple systems. Higher-tier facilities typically achieve greater power efficiency and lower water consumption through better planning and more efficient hardware.

Johor authorities estimate that a low-tier data center could consume 40 to 50 million liters of water daily. By contrast, Tier 3 and Tier 4 centers use approximately 200,000 liters per day, comparable to typical industrial usage.

The goal is to ensure that all new data centers meet stringent environmental standards in line with international guidelines. Currently, Johor has 51 data center projects: 17 are operational, 11 under construction, and 23 have received approval.

Most water is used in evaporation cooling towers with open-loop systems. Solutions to reduce water usage include underwater data centers or redesigned cooling systems. Nvidia, for instance, has developed a closed-loop system that reportedly reduces water consumption by up to 300 times, similar in principle to liquid cooling in high-performance PCs.

Environmental Impact of Data Centers: Water Consumption as a Growing Concern

The rapid expansion of data centers globally has brought to light not only their significant electricity consumption but also their strain on local water supplies. As data centers become increasingly essential to the digital economy, the environmental implications of their operations must be critically examined. The case in rural Georgia serves as a stark reminder of the potential consequences when water resources are not adequately managed.

In Malaysia, the state of Johor, a major tech hub, has taken a decisive step in response to these environmental concerns. By halting all proposals for Tier 1 and Tier 2 data centers, the state aims to address the growing pressure on its water resources. Johor's decision reflects a broader, global reassessment of data center sustainability, with officials taking note of similar challenges faced by other regions such as Las Cenizas in Mexico.

The impact of data center operations on water supplies is not just theoretical. A low-tier data center, for example, can consume up to 50 million liters of water per day, posing a real risk to local ecosystems and water availability. In contrast, higher-tier facilities, such as Tier 3 or Tier 4 data centers, use considerably less water—around 200,000 liters per day—thanks to more efficient cooling and power systems.

The issue underscores the importance of balancing technological advancement with environmental sustainability. Johor's move to restrict low-tier data center approvals reflects a growing awareness that future investments in data infrastructure must adhere to stricter environmental guidelines. This shift also highlights the increasing demand for innovative solutions, such as closed-loop cooling systems or even underwater data centers, which can significantly reduce water consumption and lessen the ecological footprint of data operations.

Ultimately, the challenge for both governments and the tech industry is to find a way to meet the growing demand for data storage while minimizing the negative environmental impact. The focus must be on fostering sustainable practices that align with international standards and safeguard vital resources like water.

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• Malaysian state of Johor drowns any ideas for Tier 1 and Tier 2 data centers —water concerns have authorities only allowing energy-efficient builds