PETALING JAYA: Kuala Lumpur has approved 11 data centre projects as of October, with nine already operational and two under construction, says the Digital Ministry.
The ministry said all data centre applications must obtain approval from the Data Centre Task Force, which assesses the availability and adequacy of electricity and water supplies.
“The assessment is necessary to ensure new developments did not affect existing utility capacity or the needs of domestic consumers and other economic sectors,” it said in a parliamentary written reply on Friday (Nov 13).
The ministry was responding to Onn Abu Bakar (PH-Batu Pahat), who asked about the number of data centre projects approved, under construction and planned in Kuala Lumpur, as well as their potential impact on the adequacy of electricity and water supplies.
On electricity supply, the ministry said the National Energy Council had allocated 4,272MW for data centre power supply until 2030.
As of August, the actual maximum electricity demand from data centres stood at 1,370MW, below their contracted maximum demand of 2,346MW.
“The comparison shows that the actual maximum demand remains below the level of contracted maximum demand,” it said.
The ministry added that Tenaga Nasional Bhd had introduced a separate Non-Domestic Ultra-High Voltage tariff category, effective July 1, 2025, for data centre operators receiving electricity at high voltage levels.
Connection Load Charges and Usage Guarantee Charges were also imposed to recover the costs of utility infrastructure development, including electricity and water supply facilities.
Where existing electricity supply is insufficient to meet demand, conditional approval may be granted, subject to companies providing their own energy sources.
On water supply, the ministry said the National Water Services Commission had enforced guidelines for water supply to data centre developments from Sept 1, 2025.
The guidelines include water-efficiency requirements, limits on Water Usage Effectiveness, the use of alternative sources such as reclaimed water, supply disruption risk assessments and storage tanks capable of holding at least two days' operational water needs.
Between January 2025 and June 2026, data centres in Kuala Lumpur and Selangor recorded average actual water consumption of 2.4 million litres per day.
The ministry said water supply reserve margins in both areas remained at a good level and were sufficient to meet current demand.
It added that operators were encouraged to adopt more energy- and water-efficient cooling technologies, use recycled water and explore alternative solutions to reduce reliance on treated water.
