Malaysian Deputy Prime Minister and Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof has issued a stern warning to data center operators in the country that aren’t fully utilizing the resources that they have reserved.
The warning came while the minister was answering questions posed by Suhaizan bin Kaiat, Member of Parliament (MP) for Pulai, in Parliament this week regarding the water usage of data centers in Malaysia. The MP questioned whether leaders would implement legislation that would require data center operators to use recycled water, develop water treatment systems and water-saving cooling technology to guard the country’s supply.
In response, Yusof noted that this responsibility fell on the Ministry of Investment, Trade and Industry (MITI) but added that the government had established a Data Centre Task Force (DCTF) headed by MITI. This task force will “discuss what is required in terms of the water supply needed by data centres,” the minister said.
The minister also said that the government will be addressing a problem known as “phantom demand.”
“They [data center operators] would claim they needed such-and-such an amount. But now we are saying that if they need a certain amount, they have to commit, and if they end up not using it, they will be penalised. This ensures that the requirements they request must be correct and accurate. Otherwise, they will be fined – including in terms of water as well as in terms of electricity usage and so on,” Yusof said.
The problem is far worse than just a few MW or million liters per day (MLD) shy of reserved capacity. The minister said in a written parliamentary reply that data center operators are only using about half of the electricity and water capacity approved for their use. In terms of water, 51.4 percent of the 55.83 MLD approved for use by data centers was being used, while on the power side just 54 percent of the approved 2,050 MW was being drawn.
While Malaysia wants to encourage data center operators to put down roots in the country, it will make sure those operators go through the comprehensive assessments to ensure the country’s water and electricity supplies aren’t strained to the detriment of other users.