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Malaysians raise concerns over data centre expansion plans

Communities across Malaysia are voicing concerns that the rapid expansion of data centres could strain local water supplies and electricity grids. Residents fear the infrastructure demands of these facilities may outpace municipal capacity.

LSN Malaysia · 8 November 2026

Malaysians raise concerns over data centre expansion plans

Growing opposition to data centre development has emerged across Malaysia as residents and local authorities question whether existing utilities can support the sector's expansion. Communities hosting or near proposed data centre projects have raised alarms about potential strain on already stretched water resources and power distribution networks.

Data centres require substantial cooling systems and continuous power supply to operate, making them among the most resource-intensive facilities. As Malaysia positions itself as a regional technology hub and several major data centre projects move forward, concerns about infrastructure adequacy have intensified.

Local residents have begun scrutinising government approvals and developer plans, demanding clearer assessments of environmental and utility impacts before projects proceed. The concerns reflect broader anxieties about rapid industrialisation and whether regulatory frameworks adequately protect community interests.

The issue highlights a tension between Malaysia's ambitions to attract technology investment and the practical constraints of delivering necessary services to support such facilities. State and federal authorities will need to address these concerns as they balance economic development with infrastructure sustainability.