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JOHOR has taken a landmark step towards sustainable industrial water use by launching a large-scale treated wastewater supply programme aimed at supporting the state's fast-growing data centre sector.
Led by the Ministry of Energy Transition and Water Transformation (PETRA) in partnership with the Johor state government, the initiative will see Indah Water Konsortium (IWK) Sdn Bhd supplying up to 12 million litres of treated effluent daily to specially built reuse facilities servicing two major data centres – Bridge Data Centres (BDC) and Computility Technology (Malaysia).
The milestone was officially recognised at the Alternative Water Use Recognition Ceremony, which highlighted both federal and state governments’ joint commitment to water resilience and sustainable economic development.
Johor Special Water (JSW), a subsidiary of Permodalan Darul Ta’zim (PDT), is managing the integrated distribution system for the recycled water. JSW is also providing alternative water sources to a third facility, Dayone Data Centre Malaysia II Sdn Bhd (Dayone).
“Data centres are among the largest consumers of treated water, particularly for cooling systems,” PETRA said in a statement on Monday.
“Diversifying water sources through sustainable means is not just an operational necessity but a collective responsibility to safeguard national water resources.”
Three Johor-based data centres have now received formal recognition from the government for adopting alternative water practices – a strategic move as demand surges alongside Malaysia’s expanding digital economy.
This collaboration marks a significant benchmark for Malaysia’s data infrastructure ambitions. With foreign investment accelerating, Johor is positioning itself as a regional digital powerhouse, with Johor Bahru playing a central role in the southern development corridor and the Malaysia–Singapore Special Economic Zone.
Sector oversight is being led by the Johor State Data Centre Development Coordination Committee, which ensures that ongoing projects integrate renewable energy and water efficiency measures into their operations.
The initiative is in line with the 13th Malaysia Plan (RMK13), particularly Priority D6, which emphasises the diversification of water sources and reduced dependence on raw water.
It also supports PETRA’s AIR2040 Water Transformation Roadmap, which identifies reclaimed water as a key alternative resource for industrial use.
“In line with the MADANI Malaysia vision, which emphasises sustainability and inclusivity, this model of federal–state cooperation sets a precedent for other states to follow,” PETRA added.
“It is vital that we secure the nation’s water future through innovative, responsible and inclusive strategies.” - August 11, 2025