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- The development comes amid increasing calls for data centres to diversify their water sources through alternatives such as reclaimed water, rainwater harvesting and recycled effluent, as Malaysia has faced an influx of water-intensive data centre projects over the last three years.
KUALA LUMPUR (Nov 13): Three agreements that together form the Klang Valley’s first integrated reclaimed-water supply chain for data centre operations were formalised on Thursday, in a ceremony witnessed by the Ministry of Energy Transition and Water Transformation (Petra).
The agreements—involving Air Selangor, Amazon Web Services (AWS), Indah Water Konsortium (IWK) and Central Water Reclamation Sdn Bhd (CWR) — were signed in the presence of Deputy Prime Minister and Petra Minister Datuk Seri Fadillah Yusof, Selangor Menteri Besar Datuk Seri Amirudin Shari and AWS Asia-Pacific data centre operations director Dr Saji PK, according to a statement by Petra on Thursday.
The development comes amid increasing calls for data centres to diversify their water sources through alternatives such as reclaimed water, rainwater harvesting and recycled effluent, as Malaysia has faced an influx of water-intensive data centre projects over the last three years.
Under the first agreement, Air Selangor will supply industrial reclaimed water to AWS, marking the first use of reclaimed water in Klang Valley’s data centre operations, according to a statement on Thursday.
The second agreement sees CWR—a joint venture company between Air Selangor and IWK—formalising a bulk water supply arrangement with Air Selangor, enabling the production and distribution of reclaimed water through a dedicated reclamation facility.
The third agreement involves IWK and CWR, where IWK will supply treated effluent to CWR to be further processed into reclaimed water.
Fadillah described the collaboration between federal and state authorities, utilities and industry players as evidence of how federal vision and state execution can produce tangible results for Malaysians.
He said the initiative supports Petra’s Water Sector Transformation 2040 (AIR 2040), which positions treated effluent as a renewable resource to strengthen national water security.
To support broader industry uptake, Petra said it is refining the legal and policy framework governing reclaimed water. At the same time, the ministry continues to promote mechanisms such as the Corporate Renewable Energy Supply Scheme (CRESS), Green Electricity Tariff (GET) and self-consumption rooftop solar pathways to help energy-intensive industries decarbonise.
Malaysia has become a regional hotspot for data centre investments in recent years, but the substantial water requirements, primarily for cooling high-heat IT equipment, have intensified scrutiny of its long-term sustainability.
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