# Global AI data-centre boom strains power and water resources

> Live situation record from CLSTR: https://clstr.news/situations/malaysia-data-centre-expansion-and-energy-demand
> Updated: 2026-08-17T05:24:24.000Z. Sources: 42. Developments: 14.

The rapid expansion of AI-driven data centres in Malaysia and India is driving massive infrastructure investment while straining power and water resources. In Malaysia, the sector has attracted approximately RM144.4 billion in approved investments, with projections suggesting data centres could consume 31% of the nation’s total power demand by 2035. 

To manage this surge, Malaysia has renewed its National Energy Efficiency Action Plan (NEEAP) through 2035. The updated strategy aims to reduce energy demand by 11.6 per cent compared to business-as-usual projections, targeting approximately US$21.5 billion in cumulative savings and a reduction of 26.1 million metric tons of CO2-equivalent emissions. This follows a previous phase that delivered 60,886 gigawatt-hours in electricity savings.

To support global demand, Vertiv continues to expand its footprint. Following previous expansions in Malaysia, Italy, and Croatia, the company has announced plans to expand manufacturing and testing operations in Ireland. This includes applying for an additional 7,000 square meters of space at its Letterkenny facility in Donegal, which is expected to create up to 300 new skilled jobs. Vertiv has also introduced its ‘Vertiv 360AI’ portfolio, a pre-designed infrastructure solution intended to reduce implementation time by up to 50% for high-performance computing environments.

In India, the industry is projected to grow from 1.5 GW to nearly 6.5 GW by 2030, with electricity needs potentially reaching 35.7 GW by 2040. While operators like Equinix, ZDATA, and NTT are adopting sustainable technologies, the rapid growth continues to spark local protests and intense political debate regarding resource security.

## Timeline

### 2026-08-17: Vertiv expands Irish operations to meet AI infrastructure demand

Vertiv is expanding its Irish manufacturing operations to support AI infrastructure growth and has launched the Vertiv 360AI portfolio to optimize data center power and cooling.

2 sources. https://clstr.news/cluster/vertiv-expands-irish-operations-to-meet-ai-infrastructure-demand

### 2026-08-11: Malaysia renews energy efficiency plan through 2035

Malaysia has extended its National Energy Efficiency Action Plan to 2035, targeting US$21.5 billion in savings and an 11.6% reduction in energy demand amid a surge in AI and data centre investments.

3 sources. https://clstr.news/cluster/malaysia-renews-energy-efficiency-plan-through-2035

### 2026-07-27: Vertiv expands cooling production at Italy's Tognana campus to meet AI data‑center demand

Vertiv will double cooling‑unit production at its Tognana site in Italy by end‑2026 and add a testing lab in 2027 to meet rising AI data‑center thermal demands.

2 sources. https://clstr.news/cluster/vertiv-expands-cooling-production-at-italys-tognana-campus-to-meet-ai-datacenter-demand

### 2026-07-24: Malaysia's data centre boom fuels resource debate and policy shift

Malaysia's rapid data‑centre expansion, now the region’s fastest, has sparked protests, resource‑use debates and a government rethink of incentives and sustainability standards.

11 sources. https://clstr.news/cluster/malaysias-data-centre-expansion-sparks-resourceuse-protests

### 2026-07-22: Vertiv expands chiller production at Tognana campus in Italy

Vertiv will double chiller output at its Tognana campus near Padova by 2026 and open a large‑capacity testing lab in 2027, citing rising AI cooling needs.

4 sources. https://clstr.news/cluster/vertiv-expands-chiller-production-at-tognana-campus-in-italy

### 2026-07-15: India plans grid upgrades to meet soaring data centre power demand

India’s Power Ministry is planning grid upgrades as data centres are projected to need 26 GW by 2032, while analysts warn current water and power resources are insufficient for a 30‑fold demand surge.

2 sources. https://clstr.news/cluster/india-plans-grid-upgrades-to-meet-soaring-data-centre-power-demand

### 2026-07-12: India and Malaysia data centre booms drive jobs and strain power supplies

India’s data centre market targets 6.5 GW capacity and 100 k engineering jobs by 2030, while Malaysia’s sector could use 31% of national electricity by 2035, sparking power and water concerns.

2 sources. https://clstr.news/cluster/india-and-malaysia-data-centre-booms-drive-jobs-and-strain-power-supplies

### 2026-07-10: Vertiv expands in Croatia, adds over 200 AI infrastructure jobs

Vertiv will create over 200 specialist jobs in Croatia, expanding engineering and production teams at its Zagreb and Rugvica sites to meet growing AI‑ready data‑center demand across EMEA.

5 sources. https://clstr.news/cluster/vertiv-adds-200-jobs-in-croatia-to-support-ai-datacenter-demand

### 2026-07-06: Vertiv opens new data‑center equipment plant in Johor, Malaysia

Vertiv opened a 236,000 sq ft data‑centre equipment plant in Johor, Malaysia, to serve AI‑driven demand across Asia (excluding China), creating hundreds of jobs and aiming for full operation by 2027.

3 sources. https://clstr.news/cluster/vertiv-opens-new-datacenter-equipment-plant-in-johor-malaysia

### 2026-07-03: Vertiv opens new Johor plant to boost AI infrastructure manufacturing in Asia

Vertiv opened a 21,900 m² factory in Johor, Malaysia to produce AI‑focused power and cooling solutions, aiming to create 500 jobs by 2027 and serve Asia‑Pacific markets.

2 sources. https://clstr.news/cluster/vertiv-opens-new-johor-plant-to-boost-ai-infrastructure-manufacturing-in-asia

### 2026-06-30: Australia and Malaysia expand data centre capacity amid energy and job debates

Australia and Malaysia are rapidly expanding data centre infrastructure for AI, promising billions in investment and thousands of jobs while raising concerns over rising electricity and water consumption.

2 sources. https://clstr.news/cluster/australia-and-malaysia-expand-data-centre-capacity-amid-energy-and-job-debates

### 2026-06-24: Malaysia Pushes Data Centre Expansion with New Capacity Checks and Economic Boost

Malaysia’s deputy prime minister mandates power and water checks for data‑centre approvals as the sector drives construction growth, creates up to 40,000 jobs and could add 11% to GDP, amid concerns over rising

2 sources. https://clstr.news/cluster/malaysia-pushes-data-centre-expansion-with-new-capacity-checks-and-economic-boost

### 2026-06-24: Malaysia commits $590 million to build 65 MW data centre in Cyberjaya

Malaysia will invest about $590 million to build a 65 MW data centre in Cyberjaya, using immersion cooling and partnering SIC with DC Union, while training 500 AI engineers.

2 sources. https://clstr.news/cluster/malaysia-commits-590-million-to-build-65-mw-data-centre-in-cyberjaya

### 2026-06-07: Malaysia's data centre surge drives gas‑fired power growth, challenging clean‑energy target

Malaysia’s push to become Southeast Asia’s data‑centre hub is boosting gas‑fired power use, clashing with its 2050 clean‑energy pledge, while officials promote a sovereign AI agenda at a national energy‑turning

2 sources. https://clstr.news/cluster/malaysias-data-centre-boom-drives-gas-power-surge-hindering-clean-energy

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Cite as: Global AI data-centre boom strains power and water resources. CLSTR, https://clstr.news/situations/malaysia-data-centre-expansion-and-energy-demand