Warning against unchecked data centre growth: Resource demands and local costs are too high

Critics argue that Malaysia's data centre boom is being pursued without enough regard for the costs to communities and the environment. The OECD report confirms what residents of Kota Damansara have experienced: these facilities place heavy demand on water and power, sometimes leading to shortages for nearby homes and businesses. The jobs they bring are mostly highly skilled and not accessible to the local workforce, which fuels resentment. The deputy minister's admission that new projects are being studied suggests that earlier approvals may have been too lax. There is concern that Malaysia is trading scarce natural resources for low-tax revenue and limited employment. Water authorities in Selangor have already flagged rising consumption from tech parks. Environmental groups warn that the carbon footprint from coal-fired power used by data centres contradicts Malaysia's net-zero targets. Without mandatory efficiency standards, the data centre rush could worsen inequality and environmental damage. The residents' memorandum in Kota Damansara is a sign that public patience is wearing thin. Critics call for a pause or moratorium on new projects until a comprehensive resource and social impact assessment is done.