BETWEEN 2021 and 1H 2025, approved data centre investment amounted to RM144.4bil, according to a Bank Negara report, “From Bytes to Bucks: The Economics of Data Centres in Malaysia”.
The report adds that data centres will also play a key role towards achieving Malaysia’s New Industrial Master Plan (NIMP) targets.
But beyond the investment headlines, there is far less attention on how everyday citizens experience the infrastructure and environmental considerations behind data centre projects.
Recently, residents in Kota Damansara raised objections to a data centre project near their homes. They were concerned about traffic congestion, noise and the potential environmental impact of the project. Questions were also raised about whether decision-making remains transparent and inclusive for the communities most affected.
This is not an isolated concern. Earlier this year, residents in Johor also expressed worries about water supply and construction dust linked to nearby data centre developments.
Undoubtedly, data centres create jobs and attract investment. However, measuring progress only through investment figures risks overlooking another part of the equation.
Prime Minister Datuk Seri Anwar Ibrahim has emphasised that digital growth should ensure benefits for both urban and rural citizens. The government has also assured that expansion of data centres will take into account available water and electricity capacity.
Industries have increasingly turned to sustainable or “green” data centres as part of the solution, such as improved cooling technologies and renewable energy adoption.
Selangor’s exploration of a sustainable AI data centre pilot project does show strategic progress. However, greener infrastructure is only part of the answer.
The rapid AI development prompts us to question whether resource planning can keep pace with continuous demand without affecting everyday lives.
The goal is not to reject digital development outright. The challenge is ensuring that the environmental and community concerns are not treated as an afterthought once investment decisions have been made.
Discussions should extend beyond boardrooms. A successful AI nation is not measured solely by the investment amount or the jobs created. It is also reflected in whether the people living closest to this development feel included in the decision-making.
VALERYN LIAW
Pasir Gudang, Johor
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