Inside Johor's Data Centre Boom: Why Investors Are Flocking South
Johor has become Malaysia's leading data centre hub, drawing tens of billions of ringgit. Here is what is driving the surge and what it means for the state.
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Johor has become Malaysia's leading data centre hub, drawing tens of billions of ringgit. Here is what is driving the surge and what it means for the state.

Malaysia's government has pledged to approve data centre projects solely after verifying that energy and water capacity can sustain both public needs and industrial demands, with a dedicated task force reviewing each application.

New York has become the first US state to freeze large data centre construction, imposing a one-year moratorium over concerns that artificial intelligence infrastructure is driving up electricity costs and straining water supplies.

Governments from New York to Ireland are imposing construction freezes and permanent bans on data centres, citing electricity strain, water depletion, and environmental pressures as artificial intelligence infrastructure demands escalate globally.

Technology companies are aggressively pursuing Native American tribal lands for data centre development, citing rapid permitting and vast space. Indigenous leaders remain deeply divided over whether the infrastructure promises genuine prosperity or repeats historical patterns of exploitation.

The explosive growth of AI-powered data centres is creating an unexpected crisis for nearby residents: relentless noise and vibration from cooling systems and generators. Lawsuits in the United States highlight gaps in regulations that were never designed for round-the-clock industrial operations.