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SHAH ALAM - Data centres cannot realistically eliminate all environmental impacts, making careful planning, resource management and monitoring important as Malaysia expands its digital infrastructure, Equinix Malaysia managing director Cheam Tat Inn said.
He said major infrastructure projects, including data centres, could create local impacts if they were not properly planned and managed.
Cheam said Equinix considered factors including water, land, environmental conditions, infrastructure readiness and community needs throughout the site selection, design and operational stages, while working with authorities, utilities and other relevant stakeholders.
“No major infrastructure project can realistically promise zero environmental impact. The priority should be to avoid impacts where possible, minimise those that cannot be avoided and monitor them throughout the facility’s lifecycle.
“Potential impacts involving water, energy, land use, biodiversity, noise and surrounding communities should be assessed before projects proceed, with development phased according to actual demand and infrastructure readiness.
“Operators should also adhere to clear standards for energy and water efficiency, responsible water sourcing, green buildings and continuous environmental monitoring,” he told Sinar Daily.
For Equinix’s Malaysian facilities, cooling technologies are selected based on site-specific conditions, with none of its existing sites relying on evaporative cooling, he said.
Cheam said there was no single type of water or cooling method required for AI data centres, as the appropriate approach depended on factors such as local climate, facility design and available infrastructure.
“Where water is required, potable, non-potable or reclaimed water may be used depending on local availability and regulations.
“Factors including water stress, long-term supply, infrastructure capacity and regional demand are considered when selecting cooling systems, while reclaimed water can help reduce reliance on potable supplies where feasible.
“The approach aims to balance water use, energy efficiency, reliability and wider environmental impacts so that the growth of digital infrastructure does not compromise community water resilience,” he added.
Cheam said Malaysia’s readiness to support continued data-centre expansion could not be taken for granted, as electricity generation, grid infrastructure, water supply and telecommunications capacity would need to grow alongside demand.
He said long-term coordination between the government, utilities and industry would therefore be necessary, with capacity planned years ahead and projects phased according to customer demand and infrastructure readiness.
Cheam also cited Malaysia’s strategic location, connectivity, scalable infrastructure, supportive policies and growing digital and talent ecosystem as factors that continued to attract data-centre operators.
“Kuala Lumpur offers strong enterprise and government demand, while Johor benefits from its proximity to Singapore and the Johor-Singapore Special Economic Zone.
“Ultimately, success should be measured by the long-term value created for Malaysia rather than simply by the number of data centres built,” he said.
He said data centres should be viewed as infrastructure supporting wider AI adoption, cloud services, digital trade and enterprise innovation, while attracting investment, creating skilled employment and strengthening local supply chains.
Cheam also stressed that there was no universally ideal location for data centres, with each site needing to be assessed according to power and water availability, fibre connectivity, environmental conditions, land-use compatibility and proximity to customers.
He said purpose-built industrial zones and digital parks could be advantageous where zoning, utilities, transport and environmental safeguards were planned together.