It has been reported that data centres’ electricity consumption could reach more than 5,000 megawatts by 2035. — 123rf
A DATA centre is constantly hungry for power and water.
It has been reported that data centres’ electricity consumption could reach more than 5,000 megawatts (MW) by 2035. To put that into perspective, 1MW equals 1,000 kilowatts (kW); back in 2016, the average Malaysian home was consuming 935 kilowatt hours (kWh) per capita, according to Statista.
At the same time, most of the data centres being constructed today rely on water-cooled chillers with evaporative cooling technology, which offer exceptionally high energy efficiency. However, such a technology requires substantial water consumption, creating a need to carefully balance energy efficiency with responsible water usage. As of now, several key measures are being looked into to ensure a reliable and sustainable energy supply to Malaysia’s growing data centre industry, Malaysia Digital Economy Corporation (MDEC) CEO Mahadhir Aziz says.
In terms of renewable energy, Mahadhir says MDEC is actively facilitating discussions between government stakeholders and data centre investors who are seeking green energy solutions.
“Our goal is to not only meet the current needs but also to develop forward-looking strategies that ensure a stable and sustainable energy supply beyond solar photovoltaic (PV).”
The strategies being focused on include:
l Renewable energy expansion: Increasing access to renewable energy sources, such as solar PV, and exploring other viable options like biomass and biogas; these alternative energy sources will play a critical role in diversifying the energy mix and enhancing sustainability.
l Energy efficiency: Implementing energy-efficient technologies and practices across data centres to help reduce energy consumption and operational costs.
l Government initiatives: Facilitating green energy access through government initiatives like the Corporate Virtual Power Purchase Agreements and the newly-announced Corporate Renewable Energy Supply Scheme. These initiatives can allow easier access to renewable energy for data centres.
Nevertheless, for long-term global energy security, Mahadhir says nuclear energy must be considered as a viable alternative; a consideration relevant for Malaysia following the implementation of the National Energy Transition Roadmap, which includes phasing out coal as a baseload fuel and replacing it with natural gas.
Mahadhir also says MDEC has begun discussions on the potential use of small modular reactor (SMR) technology. Data centres, particularly those with significant energy demands due to artificial intelligence workloads, could potentially be early adopters of SMR technology, benefiting from its economic and energy efficiency advantages.
“Making nuclear energy is a critical option. Several of our Asean neighbours, including Indonesia and Singapore, are already exploring nuclear energy as part of their energy strategies.”
When it comes to water, Mahadhir says the challenge of ensuring a reliable water supply for data centres requires a similar strategic approach to that of electricity, as it is essential to establish a sustainable system that allows water supply agencies to generate adequate revenue from industrial-scale water usage.
“This revenue is necessary both to recover the capital needed for replacing and repairing existing water infrastructure and to invest in the construction of new infrastructure.”
The use of recycled water and desalination of seawater should also be considered to reduce competition for resources.
“Although these solutions may increase water costs for industrial users, they will ultimately lead to a more robust and sustainable water supply ecosystem, benefiting all stakeholders in the long term.”
Advanced cooling technologies such as Direct-to-Chip (DTC) cooling and immersion cooling are also increasingly being implemented in some data centres.
“While these methods are highly effective, particularly for specialised applications like AI and high-performance computing where traditional air-cooled systems fall short, they are also significantly more expensive.
“To support the adoption of these capital-intensive, energy-efficient technologies, the
Malaysian Investment Development Authority (MIDA) offers an Investment Tax Allowance (ITA) for energy efficiency improvement projects,” Mahadhir says.
But there is also another form of challenge stemming from the strain of the use of water and electricity when developing data centres; sustainability consultancy firm ERM partner Pirabagaran Balasingam says the pressure on existing resources can impact the surrounding community.
“From our experience, data centres are predominantly concentrated in areas such as Cyberjaya and Iskandar Puteri. The cumulative impact in these regions can be significant, as the additional strain on resources makes them particularly vulnerable.
“Recently, the mayor of Johor Baru voiced his concerns about this issue. We may also anticipate a change in public sentiment as public awareness grows.”
