SHAH ALAM, Aug 6 — The selection of sites for new data centre developments in Selangor must take into account the concerns and wellbeing of nearby communities, said state executive councillor for investment, trade and mobility Ng Sze Han.
“The selection of locations is of utmost importance to ensure residents’ concerns are addressed and their wellbeing remains the government’s priority.
"While companies consider factors such as the availability of electricity, water supply and fibre optic infrastructure, as well as access to a skilled workforce, the state government agreed that these projects must also take into account surrounding communities," he said.
Ng was responding to Kota Damansara assemblyman Muhammad Izuan Ahmad Kasim on data centre development in Selangor during the State Legislative Assembly sitting here today.
Among other things, Izuan had called for clearer state guidelines to ensure data centres can coexist with communities, following public concerns raised over a project in Section 9, Kota Damansara, which was proposed for development near residential neighbourhoods.
The project has since been cancelled after the developer withdrew its application for planning permission to reassess its suitability.
Ng said the state government already requires data centre projects to undergo a Pre-Investment Coordination Meeting involving local authorities, technical agencies and utility providers to assess proposals, before support is granted.
"The coordination process also examines electricity and water requirements, noise control, air emissions, environmental compliance and infrastructure readiness to ensure developments are sustainable and balanced with public wellbeing.”
Meanwhile, Ng said current demand from data centres has not affected domestic water supply, particularly in densely populated areas.
"Every application for water supply is assessed based on existing treated water capacity and future demand projections before approval is considered.
"Selangor currently has a treated water reserve margin of 16.23 percent, equivalent to 1,055 million litres per day (MLD), which remains sufficient to support both new developments and the growing data centre industry.”
Ng said developers are also required to build supporting water infrastructure, including new distribution pipelines and internal and external storage tanks capable of storing up to three days of water supply, to ensure existing consumers are not affected.
On the broader development of the data centre industry, Ng said 39 projects were approved in Selangor between 2021 and 2025, based on data from the Malaysian Investment Development Authority (MIDA) and the Malaysia Digital Economy Corporation (MDEC).
"The investments are expected to create more than 2,400 permanent jobs in technical, information technology, engineering, administration and other professional fields,” he said.
He added that the state government views data centres as a key enabler of high-technology industries such as artificial intelligence (AI) and semiconductors, while maintaining that environmental sustainability and the wellbeing of residents must remain central to future developments.
"The state has imposed a 30 per cent local content requirement for data centre investments to ensure local companies benefit from large-scale projects.”
