Can Malaysian water reuse scheme address the challenges of data centre growth?

Can Malaysian water reuse scheme address the challenges of data centre growth?

The announcement, late last week, of the largest recycled water supply scheme of its kind in Malaysia to date underlines both the challenge data centre growth offers to water supply and the growing urgency of attempts to meet it.

Asia Pacific and Japan-focused hyperscale data centre specialist AirTrunk has announced what it calls a trailblazing partnership with state-owned company Johor Special Water (JSW) to jointly develop a recycled water supply to AirTrunk’s data centre campuses JHB1 and JHB2 in Johor, a Malaysian state in the south of the Malay Peninsula.

The JHB1 and JHB2 recycled water supply scheme is said to be the largest of its kind in Malaysia to date and, AirTrunk says, reinforces the company’s commitment to the sustainable use of resources and circularity.

This initiative will see recycled water locally produced from unused wastewater and will involve significant investment in the development of treatment and supply infrastructure. The recycled water will be used to meet the operational needs of AirTrunk’s data centres in Johor, conserving vital water resources for local communities.

AirTrunk points out that access to this alternative water supply complements the energy-efficient design of AirTrunk’s campuses, including the innovative liquid cooling system implemented at JHB1 since 2024. The approach enhances operational efficiency while also promoting the sustainable management of Johor’s water resources.

Johor Special Water is a subsidiary of Johor State Government company Permodalan Darul Ta’zim (PDT), which began as a state investment holding company and today explores industries that offer potential for strategic cooperation, two of which are water and wastewater.

According to Singaporean news resource The Straits Times, the Johor government intends to look for additional water resources for future industrial use with the help of Johor Special Water. These could include not just recycled water but underground water or desalination.

The water initiative with AirTrunk addresses calls from the Malaysian and Johor State governments for alternative water solutions to alleviate pressure on water supplies. This is an urgent issue for Malaysia in particular. Indeed, in January Malaysia’s National Water Services Commission (SPAN) warned that the country’s data centre boom could create a water crisis in the longer term unless reforms on data centre water usage are enacted in the next few years. In March we reported that data centres in the country could need more power by 2040 than Malaysia uses annually now.

And it’s not just about APAC. A number of areas in Latin America are having trouble dealing with the water needs of data centres, a notable example being Querétaro in central Mexico. Querétaro has low susceptibility to earthquakes and is near to Mexico City. This has attracted data centre operators but added to pressure on local water supplies.

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