Johor will stop approving Tier 1 and 2 data centres, claiming they use too much water which is 200 times more than Tier 3 and Tier 4 centres, according to reports. Johor State Housing and Local Government Committee chairman Datuk Mohd Jafni Md Shukor had reportedly said the decision was part of new requirements governing data centre development in the state.
The new rules represent the toughest stance yet by a state agency towards data centers in Malaysia. The state has categorised Tier 1 and Tier 2 data centres as high water users, allegedly consuming 200 times more water than Tier 3 and Tier 4 centres, which typically use 200,000 litres a day.
Data centers must use reclaimed water supplies from Syarikat Air Johor and ensure that the facilities are located away from housing estates and commercial areas.
Several Johor campuses have already begun using reclaimed water for cooling through reverse-osmosis systems modelled after Singapore’s NEWater, in collaboration with Johor Special Water and Indah Water Konsortium.
Johor Data Centre Development Coordinating Committee, comprising technical and non-technical federal and state agencies, will be handling approvals. The process of reviewing will focus on six key areas, including water and electricity usage, environmental impact, Water and Power Usage Effectiveness, the availability of fibre-optic infrastructure, cooling technologies that reduce water dependency, and alternative water sources. It also reviews green criteria such as green technology initiatives, carbon reduction and compliance with the Green Building Index.
New applications would go through five levels of vetting under PlanMalaysia, covering screening, technical committee evaluation, a full state coordinating committee meeting, a state planning committee session, and final approval by the relevant local council. Investors are encouraged to go for Tier 3 and Tier 4 facilities. These will only be allowed in designated industrial zones, not commercial areas, and approval will hinge on high compute, low impact criteria.
Several Johor campuses have already begun using reclaimed water for cooling through a system modelled after Singapore’s NEWater, in collaboration with Johor Special Water and Indah Water Konsortium.
As of November, Johor has approved 51 data-centre projects, out of which 17 are operational, 11 are under construction, and 23 have received approval, representing total investments of RM182.96 billion and 7,561 high-skilled jobs for local youth.