The View | Malaysia’s data centre rules aim to green the sector, not slam the door
Malaysia is developing efficiency requirements for data centers to promote sustainable growth, contrasting with a growing backlash in the United States. New York recently became the first US state to impose a temporary ban on large data center construction due to concerns about energy and water strain, with other states considering similar measures.
While Malaysia is proactively crafting efficiency requirements to foster a sustainable technology sector, the United States is experiencing a significant backlash against data center development. According to Jefferies, this opposition has become a structural constraint on AI infrastructure, expanding into broader anti-AI sentiment.
In the first quarter of the year, approximately 75 data center projects, valued at around US$130 billion, were either delayed or blocked by local resistance across the US. This figure nearly matches the total value of projects thwarted by local opposition throughout the entirety of 2025.
Last month, New York enacted a temporary ban on the construction of new large data centers, citing concerns over the impact on energy and water resources. Lawmakers in more than a dozen other states are reportedly considering similar temporary prohibitions, indicating a widespread political battle over data center expansion.