KUALA LUMPUR: Public concerns over the impact of data centres on energy and water resources are legitimate and must be addressed, says Digital Minister Gobind Singh Deo (pic).
Gobind said this while launching the National Artificial Intelligence Readiness Week 2026 here in Ampang yesterday.
“Data centres consume significant amounts of energy and water.
“In the next quarter, we may table the Data Infrastructure Act in Parliament. One of the things I want to address through this legislation is precisely this issue.
“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.
“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.
“As we anticipate substantial increases in energy demand, we are beginning discussions about whether these companies can also invest in building their own energy and water supplies to support the operations of their data centres,” said Gobind.
He also said that it is important to ensure that AI and the building of data centres benefit the wider population.
“Malaysia is no longer a country that is merely anticipating the arrival of data centres. We have already built them.
“The next step is to develop the supporting industries and infrastructure around these data centres.
“As the years go by, we must strengthen the resources and supporting ecosystems needed to sustain them.
“This includes expanding and strengthening our electricity grid to ensure that we have the capacity to support future demand.”
Speaking to the media later after the event, Gobind also stated that the AI Governance Bill is important to ensure there is proper legislation to deal with questions on data centres.
He added that an institutional ecosystem would have to be set up along with the AI Governance Bill to enforce the laws.
“I have received the final draft of the AI Governance Bill. We are currently obtaining feedback, and hopefully it will be presented to the Cabinet soon.
“The next question is this: even if we have governance frameworks in place, what happens if we do not have the agencies or bodies necessary to enforce them? That would create another problem.
“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.
“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 the legislation can be implemented effectively.”
