KUALA LUMPUR: Public concerns over the impact of data centres on the country's energy and water resources are legitimate and must be addressed, says Digital Minister Gobind Singh Deo.
He said the government must clearly explain the benefits of data-centre investments while ensuring operators contribute towards meeting the substantial energy and water demands of their facilities.
"People have legitimate concerns. They ask why we are making so many concessions, why so much energy and water are being used, and why we are investing in data centres when these facilities do not directly create large numbers of jobs and opportunities.
"So, from the government's perspective, we must think carefully about how we explain these investments to the public," he said when launching National Artificial Intelligence (AI) Readiness Week 2026 in Ampang on Thursday (Nov 12).
He said the government plans to introduce the Digital Infrastructure (Data Centre) Bill to regulate the industry's growth in line with the country's energy and water supply capacity.
The proposed legislation, which is expected to be presented to the Cabinet next year, aims to ensure that investments in data centres contribute to the domestic economy while addressing utility constraints and environmental concerns.
Gobind said data-centre operators must also explain how they intend to invest in securing sustainable energy and water supplies to support their operations amid an expected surge in demand.
"We need to explain how these developments will change people's lives, how they will benefit society and why they are important for the country's future. Society expects us to provide clear answers," he said.
He said it was important to ensure that the development of AI and data centres benefited the wider population while the country's electricity grid was strengthened to cope with future demand.
The government is also working on proposed legislation to regulate the data-centre industry.
Separately, Gobind said the proposed AI Governance Bill was important in establishing a proper legal and institutional framework for artificial intelligence, including the agencies responsible for enforcement.
"For example, if someone wants to lodge a complaint, where should they go? Who will investigate it? Which authority will be responsible for handling the complaint, and how will the matter be addressed?
"These are some of the issues that AI Malaysia is working hard to address," he told reporters after the event.
Gobind said his ministry was obtaining feedback on the Bill and hoped to present it to the Cabinet soon.
"The draft paper is ready and is currently being circulated among the various ministries for their feedback," he said.
"The aim is to develop the necessary framework so that we can table the Bill by the first quarter of next year. By then, we should also have the relevant enforcement agencies in place to ensure that the legislation can be implemented effectively."
