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JLL: Buffer zones, stricter standards can address residential concerns over data centres

by thesun
August 2, 2026
in Business
Reading Time: 2 mins read
Summarize with ChatGPTSummarize with Perplexity

KUALA LUMPUR: JLL Malaysia believes concerns over data centres being built near residential neighbourhoods can be addressed through stricter planning controls, mandatory buffer zones and higher sustainability standards.

Managing director Jamie Tan said planning requirements require adequate separation between data centres and residential developments to safeguard both property saleability and residents’ quality of life.

“There needs to be adequate buffer zones between the data centre and residential development. These are some of the things that the government has put in place, the planning controls have put in place, to ensure that whatever data centre that has been built will not affect the saleability or the liveability of a residential development,” he told a media briefing today.

Tan was responding to concerns over whether the rapid expansion of data centres could affect nearby residential developments, amid worries over noise, electricity demand and water consumption.

He said the Johor government has introduced additional safeguards by restricting new developments to Tier 3 and Tier 4 data centres, which are designed to operate more sustainably and efficiently in terms of power and water usage.

“I think that’s why the government in Johor has restricted only for development of Tier 3 and Tier 4 data centres, which are more sustainable in terms of its PUE and all water usage and water consumption. That’s one of the measures put in place by the government to ensure that it will not impact all the residents,” he said.

Tan said concerns from nearby communities are common during the construction phase of major developments, whether data centres, commercial buildings or residential projects.

“As with any development, whether it’s a data centre, commercial or apartments, you do have residents who will always come out to protest,” he said.

However, he said such concerns often subside once facilities become operational.

Citing the NEXTDC facility in Petaling Jaya, which is surrounded by terrace houses, apartments and condominiums, Tan said the project initially faced opposition from nearby residents but attracted few complaints after it began operations.

“Initially, when they were building, there were a lot of pushback… But after that, when it was in operation, hardly any complaints because it’s a Tier 4 data centre, sustainable, and the way it’s operated and managed is world-class.”

He said the experience showed that properly planned and well-managed data centres can coexist with surrounding residential communities.

“All the fears which people had initially were allayed once the data centre was in operation and they saw that it doesn’t cause any problem.”

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