How does Selangor ensure data centre growth aligns with environmental protection?

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Selangor's Approach to Sustainable Data Centre Development

Selangor ensures data centre growth aligns with environmental protection through a rigorous pre-approval process that integrates environmental considerations, resource management, and infrastructure readiness. This strategy prioritizes balancing the burgeoning demand for data centres with the state's environmental needs and the well-being of its residents. The state government mandates comprehensive assessments and specific infrastructure provisions from developers to mitigate potential environmental impacts.
Pre-Investment Coordination for Environmental Safeguards

Before any data centre project receives approval, Selangor facilitates pre-investment coordination meetings involving local authorities, technical agencies, and key utility providers, including the Department of Environment (DOE) and PLANMalaysia. These sessions are designed to proactively assess proposed data centre developments. During these meetings, critical aspects such as electricity and water supply, noise control, air emissions management, and overall compliance with environmental regulations are meticulously evaluated and coordinated. This early-stage dialogue ensures that potential environmental challenges are identified and addressed before construction commences, thereby embedding sustainability from the project's inception.
Federal Oversight and Resource Efficiency

Complementing the state-level efforts, the Federal Government, through its Data Centre Task Force (DCTF), conducts an early-stage screening process for all proposed data centre developments. This federal oversight mechanism focuses on ensuring that these projects utilise resources efficiently and sustainably. By aligning state and federal screening processes, Selangor aims to create a robust framework that supports the growth of the data centre industry while adhering to stringent environmental and resource management standards.
Infrastructure Requirements and Water Security

To safeguard domestic water supply amidst increasing data centre demand, developers are mandated to provide new water supply infrastructures. This includes the installation of distribution pipelines from suitable reservoirs and the construction of external and internal water storage tanks with a capacity equivalent to three days of supply. This requirement ensures that data centres can meet their operational needs without adversely affecting supply to existing consumers, thereby maintaining water security for the general populace. The state's water utility, Air Selangor, presently maintains a treated water reserve margin of 16.23 per cent, indicating sufficient surplus to accommodate future data centre needs, which are projected to demand 632 MLD.
Local Content and Economic Integration

Beyond environmental and resource management, Selangor also mandates a 30 per cent local content requirement for data centre investments. This policy ensures that domestic companies can benefit from the substantial business opportunities generated by these large-scale investments. Between 2021 and 2025, Selangor has seen the approval of 39 data centre projects, which are anticipated to create over 2,400 job opportunities across various sectors, fostering economic growth alongside sustainable development practices.

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How does Selangor ensure data centre growth aligns with environmental protection?

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