Chairman of the Institute of Strategic and International Studies (ISIS) Malaysia, Datuk Prof Dr. Mohd Faiz Abdullah, in his recent op-stressed the urgent need for Malaysia to adopt sustainable practices in its burgeoning data centre industry.
“Data centres are notorious for their immense energy and water consumption.
“With the current pace of expansion, the pressing question is: where do we draw the line between economic growth and environmental degradation?” Dr. Faiz wrote in The Edge Malaysia Weekly.
Between 2021 and 2023, Malaysia attracted RM114.7 billion in data centre investments, a clear indication of the sector’s rapid rise.
However, as Dr. Faiz pointed out, these facilities contribute between 1% and 5% of global greenhouse gas emissions, putting them on par with the aviation industry.
To mitigate the environmental risks, Dr. Faiz highlighted the importance of integrating the green economy with the digital economy and suggested Malaysia to follow Singapore’s Green Data Centre Technology Roadmap, which emphasises energy efficiency and sustainability.
“Chips need to be produced with sustainability in mind, and data centres must find innovative ways to keep cool,” he said,
One of the key challenges Dr. Faiz identified is Malaysia’s current energy mix. In 2020, more than half of the peninsula’s electricity came from coal, raising concerns about the country’s ability to power the growing data center sector with clean energy.
“Achieving a balanced energy mix is crucial to support both the nation’s renewable energy goals and its digital ambitions,” he noted.
Dr. Faiz also called for more robust policies, moving from voluntary guidelines to enforceable standards that ensure data center operators commit to sustainability.
He pointed out that Malaysia’s existing 2015 technical code for green data centers is currently under revision but remains non-binding.
Nevertheless, Dr. Faiz lauded the recent announcement by the government for Malaysia to expect a robust framework on energy and water efficiency that would usher innovative solutions.
“To succeed, we need active inter-ministry discussions and collaboration between agencies overseeing energy, water, and environmental standards,” he wrote.
As Malaysia strives to become a leader in the digital economy, Dr. Faiz emphasized that this growth must not come at the expense of the environment.
“We must harness AI and technological innovations not just for economic gain but also for transformative climate solutions,” he said.
The op-ed by Dr. Faiz, which appeared in The Edge Malaysia Weekly from September 23 to 29, 2024, offers a timely reminder of the delicate balance between development and sustainability.
