Asian Data Center Hub Struggles with Soaring Energy and Water Demands of AI

The AI boom has driven massive investments in data centers, but it's straining energy and water resources, particularly in Johor, Malaysia—a rapidly growing Asian data center hub. Hosting tech giants like Google and Microsoft, Johor faces power capacity limits and water shortages. The region’s data centers are projected to use 20% of Malaysia’s electricity by 2035, with cooling systems consuming millions of liters of water daily. As global demand surges, countries are struggling to balance infrastructure growth with climate goals. Malaysia plans a “Sustainable Data Centre Framework” while urging renewable energy use and recycled water to ease environmental impact.