AI Overview

Yes, the Johor state government is stopping approvals for less efficient Tier 1 and Tier 2 data centers due to high water usage, focusing instead on more sustainable Tier 3 and Tier 4 projects that use less water (around 200,000 liters/day vs. 40-50M liters/day for low-tier), promoting water reclamation and efficient cooling for better environmental standards.
Why the Change?
Water Conservation: Tier 1 & 2 centers consume significantly more water, straining resources, especially in a water-sensitive area like Johor.
Sustainability Focus: Johor aims to attract greener data centers that align with global environmental benchmarks.
New Requirements:
Higher Tiers: Only Tier 3 and Tier 4 projects (which offer redundancy and higher uptime) are now encouraged.
Water Efficiency: New projects must incorporate reclaimed water for cooling and use efficient closed-loop systems, similar to those used in modern gaming PCs, notes Tom's Hardware.
Impact:
This policy shifts development towards more responsible data center growth, attracting major players and investment to sustainable tech hubs like Sedenak Tech Park (STeP) in Kulai, Johor.