What safeguards are in place for water and power supply with new data centres?

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New data centre projects are assessed to prevent strain on electricity and water supplies
All applications for new data centre projects undergo strict assessments to ensure electricity and water supplies to households and local industries are not affected, Deputy Investment, Trade and Industry Minister Sim Tze Tzin said in the Dewan Negara on July 28. He said the Data Centre Task Force reviews each application using factors such as investment requirements and the project’s capacity, with the aim of safeguarding the country’s energy security.
Data Centre Task Force reviews every application before approval
Sim said the Data Centre Task Force assesses each new data centre application. The review is not limited to one variable, and it considers both investment requirements and the project capacity.
Assessments are designed to protect households and local industries
The safeguards are explicitly framed around avoiding impacts on electricity and water supplies. The minister said the assessments are conducted so that supplies to households and local industries are not affected as data centres grow.
Capacity and investment levels are part of the evaluation
In explaining how the evaluation works, Sim pointed to two assessment factors: investment requirements and project capacity. This indicates that authorities are looking at how large the projects are and what resources they involve, alongside broader supply considerations.
The government maintains a careful approval approach for data centres
Sim added that the government is always careful when approving applications related to data centres. He made the point while responding to questions about how growth in data centres would not compromise electricity supplies to households and industries.

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What safeguards are in place for water and power supply with new data centres?

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