Malaysia's Johor Bans Low-Tier Data Centers Over Water Strain

Malaysia's Johor, one of Southeast Asia's fastest-growing data center hubs, has announced it will no longer approve applications for Tier 1 and Tier 2 data centers because of their enormous water consumption -- up to 50 million liters daily, or roughly 200 times what higher-tier facilities require. The Malaysian state has approved 51 data center projects as of November 2025. 17 centers are already operational, 11 are under construction and 23 received approval this year. The announcement follows concerns raised by a local politician who pointed to water supply disruptions in Georgia in the US after a data center began operations and protests in Uruguay over fears that data centers could affect farms.

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