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Elyssa Lopez · · 6 min read

AI boom guzzles Malaysia’s water

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Hi there,

In one of my classes in graduate school, our professor asked us about the possible disadvantages of widespread AI adoption in businesses. There were the usual answers: loss of jobs due to automation, hallucinations, and copyright issues.

Unsurprisingly (but also sadly), the possible environmental impact of these AI systems came last.

This reminds me why our Big Story this week is a must-read, especially as governments in Southeast Asia continue to navigate the balancing act between Big Tech’s investment interests in the region and their own natural resources.

My colleague Scott argues in his story that Malaysia, one of the biggest benefactors of the Big Tech investment boom in the region, can soon face energy security and water supply risks.

The country is home to over 50 data centers, which, after all, hog huge amounts of water and energy. But the country may not have enough supply of both resources to keep the industry sustainable.

Speaking of impact, this week’s Hot Take discusses how Amazon’s massive spending spree on AI robots could influence the ecommerce industry globally. The Big Tech firm is expected to spend US$25 billion this year for the improvement of its retail business, which includes the establishment of robotics-led warehouses.

— Elyssa


THE BIG STORY

Malaysia’s thirst for AI data centers could leave it high and dry

Image credit: Timmy Loen

Experts in Malaysia say the country has to start drumming up ways to source clean water and energy to supply not just its local data center industry but its people as well.


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TIA Writer

Elyssa Lopez

I write business stories from Manila. If you have story tips, please send an email to elyssa@techinasia.com. You may also find me on X @elyssalopz.