Malaysia, which is fast becoming a major data center, will start charging tech companies premiums for energy and water as demand for AI infrastructure grows.
The country attracted more than $16 billion in investment commitments last year, including from Amazon, Nvidia, Google, Microsoft, and TikTok owner ByteDance.
Much of this investment has gone into data center development in Johor, known for its cheap land, abundant labor, and strategic proximity to Singapore.
However, this rapid growth has put pressure on the country’s natural resources, prompting the government to tighten regulations to ensure sustainable development.
According to a Financial Times report, the Minister of Natural Resources and Environmental Sustainability, Nik Nazmi Nik Ahmad, stressed that Malaysia is open to accepting companies that bring cutting-edge technology projects, such as AI, as a priority.
However, he added that these companies must be prepared to pay premium charges to secure the necessary water and energy supplies, with many of them having already shown a willingness to do so in order to operate in Malaysia.
