Selangor to impose strict conditions on data centre approvals

SEPANG — Selangor's state government is tightening approval criteria for data centre developments, citing concerns about strained utility infrastructure across the region. The administration will require project developers to provide comprehensive assessments proving adequate water and electricity supply before securing permits, according to state leadership.

The decision reflects growing anxiety over resource constraints as data centre operators increasingly establish facilities in Selangor, attracted by the state's strategic location and existing digital infrastructure. Officials have indicated that the current pace of development could outstrip the capacity of existing water and power systems if left unchecked.

The state government is conducting a detailed review of current water and electricity supply capabilities across key industrial zones to establish clear benchmarks for future approvals. This assessment will form the basis of new guidelines that developers must satisfy before projects receive the greenlight.

The stricter approval framework aims to balance economic growth in the technology sector with the need to protect essential services for the broader population. State authorities have signalled their commitment to supporting the data centre industry while ensuring sustainable development that does not compromise utility supply reliability.