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Global AI data-centre boom strains power and water resources

Updated 3 times since CLSTR started tracking revisions of this situation.

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2026-08-11 14:47 UTC → 2026-08-19 02:05 UTC · added removed

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. This surge To manage this surge, Malaysia has prompted the government to mandate state-level resource verification, implement a project scorecard, and renew the renewed its National Energy Efficiency Action Plan (NEEAP) through 2035 2035. The updated strategy aims to mitigate emissions reduce energy demand by 11.6 per cent compared to business-as-usual projections, targeting approximately US$21.5 billion in cumulative savings and demand. 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 this growth, global demand, Vertiv has expanded continues to expand its global footprint, opening a 21,900 m² manufacturing plant footprint. Following previous expansions in Senai, Johor, to serve Malaysia, Italy, and Croatia, the Asian market company has announced plans to expand manufacturing and doubling chiller production testing operations in Ireland. This includes applying for an additional 7,000 square meters of space at its Tognana campus Letterkenny facility in Italy. In Croatia, Vertiv Donegal, which is expected to create up to 300 new skilled jobs. Vertiv has also adding over 200 specialist roles introduced its ‘Vertiv 360AI’ portfolio, a pre-designed infrastructure solution intended to meet EMEA demand. 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. This has led the Indian Power Ministry to review grid reinforcement and transmission capacity. While operators like Equinix, ZDATA, and NTT are adopting sustainable technologies such as immersion cooling, treated wastewater, and solar power, technologies, the rapid growth continues to spark local protests and intense political debate regarding resource security and the long-term impact of fossil-fuel-dependent energy supplies. security.

Versions

  1. 2026-08-19 02:05 UTC Global AI data-centre boom strains power and water resources
  2. 2026-08-11 14:47 UTC Global AI data-centre boom strains power and water resources
  3. 2026-07-30 08:24 UTC Data‑centre expansion strains power, water, sparks protests
  4. 2026-07-27 12:40 UTC Data‑centre expansion fuels cooling demand, protests

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