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Data centers create thousands of jobs for Malaysia but raise concerns over power and water shortages

Data centers create thousands of jobs for Malaysia but raise concerns over power and water shortages.

- Google, Amazon, Nvidia, Alibaba and others are building data centers there.

- Malaysia is ramping up their capacity the fastest out of the region

- For H1 2024, the potential electricity demand was 850 MW

- For Johor, about 50 projects have been implemented in three years

- The capacity of data centers there has already increased 100 times in five years

- Data centers have created about 40,000 jobs for the country

- Malaysia has long aspired to become a global IT center

- 1.2 million people were employed in the country's digital economy in 2023

- The digital economy contributes about 25% of the country's total GDP

- The GDP of the SEA region could generate $1 trillion from AI as early as 2030

- Malaysia is expected to account for more than a tenth of it

- Meanwhile, water and power outages can occur near data centers

- Widespread water shortages could happen in as little as five years

- Also due to climate change, aging infrastructure, etc.

- Demand for energy from data centers will exceed 5 thousand MW by 2035

- This is almost a fifth of the installed capacity for Malaysia
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