The rapid growth of data centers in Malaysia is straining electricity supply, water resources, and the labor market, according to the macroeconomic research office for ASEAN+3 countries.

According to the organization, a 100 MW data center consumes about 4.2 million liters of water daily, with approximately 80% of the country's operational capacity located in Johor. By 2029, the capacity of data centers in Malaysia could increase to 3–4 GW.