Johor's booming data centre industry is stirring worries among residents about noise, property values, and health risks.
New Developments in Johor
In the picturesque Eco Botanic community of Iskandar Puteri, homeowners are just beginning to settle into their newly acquired European-inspired terraced homes. Among them is Lee Shi Qing, a finance manager who purchased a sizable unit for about RM1 million (approximately S$313,000) as her first home. However, her excitement turned to concern when construction commenced on a nearby data centre, prompting her to list her property for sale only six months after moving in.
“The land clearing for the data centre started last year, and the pylons went up this year,” revealed the 38-year-old. She noted that the new hyperscale facility being developed by TM Nxera—a collaboration involving Telekom Malaysia and Singtel's digital infrastructure arm—has raised her worries over living close to high-voltage lines.
Impact on Residential Areas
Johor is undergoing a data centre transformation, with new power transmission lines and industrial sites drawing closer to residential neighborhoods. This shift has sparked apprehensions about noise, environmental factors, and the potential depreciation of nearby properties. Real estate experts point out that in a market already facing oversupply, new infrastructure could deter buyers, regardless of the scientific evidence surrounding health risks.
“Market perception plays a major role in property pricing,” commented Samuel Tan, CEO of Olive Tree Property Consultants. “Even if studies dismiss the danger of low-frequency electromagnetic fields, the stigma and visual disruption can significantly affect property values.”
The national energy provider, Tenaga Nasional, did not respond to queries regarding the new infrastructure developments. In contrast, TM Nxera has stated it is not responsible for the local power transmission systems but is committed to addressing community concerns.
Growing Data Centre Landscape
According to state investment agency Invest Johor, there are currently 65 data centre projects awaiting approval in the region. Data centre industry tracker Baxtel reports that 31 of these facilities are already operational in Johor. This boom in data centres is largely attributed to the overflow of demand from Singapore, which has tightened regulations on new developments since 2019 due to land and energy constraints.
Since 2021, Johor's data centre capacity surged from 10 megawatts (MW) to a remarkable 1,110 MW, establishing it as the third-largest data centre market in the Asia-Pacific region, behind Tokyo and Singapore.
Residents' Concerns Over Noise and Health
Residents in close proximity to these facilities have expressed frustration, citing issues like dust and noise pollution. Complaints regarding persistent humming sounds and rising local temperatures linked to the cooling systems of data centres have also surfaced. “Data centres can contribute heat to the environment, causing discomfort,” lamented Iskandar Puteri municipal councillor Lim Soon Hai.
In Nusantara Prima and Nusa Bayu townships, where a data centre is situated nearby, median property prices have notably dropped, raising concerns over long-term valuations. Mohanambal Rethinam, who operates a kindergarten close to the new developments, reported a significant decline in student enrollments due to complaints from parents about the environmental impact.
Similarly, Nooraini Jaafar, a resident who moved from Singapore, expressed regret over the displacement of a cherished forested area by the construction, affecting the ambiance of her neighborhood and possibly her property value.
Scientist Weighs In on Neighbors' Health Risks
Health concerns remain a critical focal point for many residents. Mohd Fadhil Md Din, director at Universiti Teknologi Malaysia’s Campus Sustainability Centre, explained that transmission lines generate non-ionising, low-frequency electromagnetic fields (EMFs), which tend to dissipate within a range of 50 to 100 meters. According to him, residences situated 200 to 300 meters away do not face significant EMF exposure risks, validating that relocation is not necessary based solely on health grounds.
As Johor continues to expand its infrastructure to accommodate the flourishing data industry, residents face the dual challenge of potential environmental drawbacks and property market fluctuations. As such, experts suggest that burying cables underground in the future might alleviate some fears associated with high-voltage lines and data centres, providing both safety and aesthetic improvements for the community.