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Johor Blocks Tier 1–2 Data Centers Over Water Use, Demanding Water‑Efficient, Higher‑Tier Builds

08:34 AM, 11/28/2025
Johor Blocks Tier 1–2 Data Centers Over Water Use, Demanding Water‑Efficient, Higher‑Tier Builds

Johor will no longer approve Tier 1 and Tier 2 data centers, prioritizing water conservation as the sector grows. Officials cite international examples of water stress and estimate low‑tier centers could use 40–50 million liters/day versus about 200,000 L/day for Tier 3/4 sites. The state — home to 51 data center projects in various stages — now requires stronger environmental and water‑efficiency standards, and operators are exploring closed‑loop and submerged cooling alternatives.

The Malaysian state of Johor has moved to block proposals for low‑tier data centers (Tier 1 and Tier 2), citing growing concerns about local water consumption as the sector expands. Authorities say water demand will now be a decisive factor in approving new facilities, alongside energy efficiency and other environmental safeguards.

Why the change

Johor, the country’s technology hub, has attracted substantial foreign investment and a cluster of facilities that support thousands of skilled jobs. State official Amira Aisya has pointed to international examples of community water stress around data centers — including cases in rural Georgia and Las Cenizas, Mexico — as part of the rationale for tightening approvals.

Tier differences and water impacts

Data centers are categorized into four tiers. Tier 1 and Tier 2 facilities typically rely on single cooling and power paths and are less resilient and efficient. Tier 3 and Tier 4 facilities use multiple redundant systems, and — as officials note — tend to achieve better overall power efficiency and lower water consumption through improved design and more efficient hardware choices.

The Johor government estimates a low‑tier data center could consume roughly 40–50 million liters of water per day, a figure officials describe as alarming for local supplies. By contrast, Tier 3 and Tier 4 sites are reported to use on the order of 200,000 liters per day, an amount officials equate with a typical industrial load. These figures are being used by regulators to justify requiring higher environmental and water‑efficiency standards for new builds.

How water is used and alternatives

Most of the reported water is used in open‑loop evaporative cooling towers, which rely on continual freshwater make‑up. Operators and regulators are exploring several alternatives to reduce freshwater demand, including closed‑loop cooling systems, submerged or underwater data‑center concepts, and other reuse or non‑evaporative cooling techniques. Some vendors claim major improvements: for example, Nvidia has proposed a closed‑loop redesign it says could reduce water use by orders of magnitude.

Scale in Johor

Johor currently has 51 data center projects at various stages: 17 in operation, 11 under construction and 23 approved. With the new policy direction, officials say all future proposals must meet stronger environmental standards aligned with international benchmarks and demonstrate responsible water management plans.

Note: Reported consumption figures are those cited by Johor officials and should be understood in that context; independent verification and operational details can affect actual water use per facility.

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