Data centres in Malaysia’s Johor told to wait for water ‘until mid-2027’
18 November 2025
Investors in Malaysia’s fast-growing data centre hub of Johor have been asked to postpone water-cooled expansion projects for at least 18 months, as authorities manage drought and increasing pressure on the state’s water resources.
Officials said the temporary deferral applies to developers whose facilities rely on water to cool servers operating 24/7. The move comes amid growing concerns from residents and environmental groups that billions of dollars in tech investment may clash with basic water needs.
Johor currently hosts 15 operational data centres with dozens more under construction. Cooling these large server farms — which power everything from artificial intelligence to e-commerce — requires an estimated 675 million cubic metres (178.3 billion gallons) of water per day, according to government figures.
While water supplies are generally sufficient, authorities acknowledge distribution challenges in some areas. The decision to defer new water-intensive expansions aims to ensure equitable access for households, industry, and essential services.
