The environment and our AI future


Data dilemma: In Malaysia, just as in many countries around the world, balancing technological progress with environmental sustainability is becoming a challenge. — Reuters

EARLIER this month, on June 5, the world marked World Environment Day, an annual observance aimed at promoting environmental awareness and action. The event also serves as the anchor of June, which is widely recognised as Environment Month.

I was reminded of two things. First, the results of a Unicef Malaysia survey from a while back, which found that more than nine in 10 Malaysian youth reported experiencing environment and climate-related effects, ranging from air pollution to floods, and drought.

Second, and more recently, a post that had been circulating on social media just around World Environment Day. It was a series of photos showcasing Malaysia’s lush green forests and rivers, with the text “no data centre is worth destroying this” overlaid on it.

At first glance, these two may seem unrelated. One highlighted how climate change is already affecting young Malaysians, while the other highlighted the increasing challenge of balancing technological progress with environmental sustainability.

This tension has been exacerbated by the rapid rise of artificial intelligence (AI). Young people increasingly use it for studying, work, and everyday tasks. Gover-nments and businesses, too, are racing to position themselves at the forefront of the AI revolution, attracted by promises of higher productivity and economic growth.

These ambitions are reflected in national policy commitments. Within Budget 2026, RM5.9bil was allocated for digital research and development, RM2bil for a Sovereign AI Cloud and RM2bil for the Madani Submarine Cable project which, among other objectives, aims to support AI-driven data demands between Penin-sular Malaysia and Sabah and Sarawak.

Yet the infrastructure powering this digital future is far less visible.

According to a recent paper by the Centre for Responsible Technology (CERT), the rapid expansion of AI and data centres presents a growing environmental dilemma.

The most immediate concern is energy consumption. As AI models become increasingly sophisticated, the data centres supporting them require even greater computing power.

This translates into a growing demand for electricity. With Malaysia’s grid projected to remain more than 75% reliant on fossil fuels until at least 2033, much of the energy powering AI infrastructure will likely come from natural gas and coal. This complicates our country’s climate ambitions to reduce carbon emissions and meet renewable energy targets.

Water usage presents another challenge. Data centres generate significant amounts of heat and require large quantities of water for cooling. Government estimates suggest that cooling data centres could require as much as 675 million litres of water a day – equivalent to the daily consumption of approximately 700,000 to 800,000 households.

The strain on infrastructure is already becoming evident in Johor, where data centre development is most concentrated. This raises questions about how Malaysia can balance its digital ambitions with long-term resource security.

The CERT paper further questions whether some sustainability claims truly reflect reality, noting that data centres can purchase renewable energy credits while still relying on electricity generated largely from fossil fuels. This casts doubt on whether such practices genuinely reduce emissions or merely shift how they are accounted for.

Why should any of this matter to young Malaysians? Because we are arguably the generation most invested in AI, while also being the generation most likely to live with its consequences.

Few generations have embraced a new technology as quickly as today’s youth have embraced AI. Within a remarkably short period, it has become embedded in the way many young people study, work, and access information, reshaping expectations of what productivity and learning can look like.

At the same time, it is also reshaping the labour market that young people are preparing to enter. Research by the Institute of Strategic and International Studies Malaysia and the World Bank estimates that approximately 4.2 million Malaysian workers are highly exposed to generative AI technologies.

While exposure does not necessarily translate into job losses, it does suggest that many occupations will be transformed as AI becomes more capable and widespread. For young Malaysians, adapting to these changes may increasingly become a prerequisite for career success.

Yet the environmental costs outlined earlier also raise the uncomfortable question of who will bear the burden of powering this future. The answer, at least in part, is also young people.

The same generation that stands to benefit from AI-driven innovation is already experiencing the effects of environmental degradation. The Unicef Malaysia survey quoted earlier already paints a picture of high exposure to climate change impacts among Malaysia’s youngest. At the current rate, we can expect worsening floods, prolonged heat, haze episodes, and disruptions to everyday routines.

Furthermore, the World Meteorological Organisation reported that every year since 2015 has ranked among the warmest on record. A hotter climate carries real consequences.

Rising temperatures drive up energy consumption, while growing data centre demand may place additional pressure on water resources already shared by households and local communities. The loss of green spaces to industrial development can also diminish quality of life, particularly in urban areas.

The issue is one of trade-offs. The environmental costs associated with AI infrastructure are immediate and tangible, whether in the form of increased energy demand and water consumption, or pressure on local ecosystems. The benefits, however, are often framed as future gains in productivity and economic growth.

None of this means that Malaysia should abandon its AI ambitions. Rather, it highlights the need to ensure that technological progress does not outpace environmental responsibility.

As demand for AI continues to grow, policymakers will need to consider if the economic benefits of data centres outweigh their resource demands, which often come at the expense of environmental sustainability and community well-being. Otherwise, there is a risk that communities will bear the costs of becoming an AI hub without fully sharing in its rewards.

As Malaysia accelerates its AI ambitions, young Malaysians must have a vested interest in asking difficult questions. Not out of opposing progress, but because the future being built in the name of innovation should be one that we can both benefit from and sustainably inherit.

Malaysian youth advocate Jonathan Lee Rong Sheng traces his writing roots to The Star’s BRATs programme. The views expressed here are his own.

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