Air Selangor outlines multi-source water strategy to support Selangor's growing data centre demand
PENGURUSAN Air Selangor Sdn Bhd (Air Selangor) is prepared to meet the rising water needs of Selangor's data centre developments with a multi-source supply strategy that balances potable, reclaimed and reused water — depending on each operator's sustainability goals and technical requirements.
Its CEO Adam Saffian Ghazali said the utility is coordinating closely with developers to accommodate a projected demand of 250 million litres per day (MLD) from data centre projects across the state.
'This is what data centres want from us — they want potable water. Our 34 water treatment plants have a combined design capacity of 6,300 MLD and we are currently producing around 5,300 MLD. That gives us a buffer of 1,000 MLD,' he said at the Air Selangor Sustainability Report 2024 press conference on Tuesday.
While reserve capacity is in place, he noted that distribution connectivity remains a key factor in ensuring direct supply to each data centre site.
In addition to treated water, Air Selangor is offering tailored solutions through its specialised subsidiaries — particularly for clients pursuing environmental, social and governance (ESG) targets or green building certifications.
'For data centres that do not require potable water, we can provide reclaimed water through our subsidiary, Central Water Reclamation, which is 60% owned by Air Selangor and 40% by Indah Water Konsortium Sdn Bhd (IWK),' Adam said.
This option applies to facilities located near existing IWK plants, where treated effluent can be repurified and redistributed.
For industrial zones, Air Selangor is also offering reused water solutions sourced from Industrial Effluent Treatment Systems (IETS), managed by a newly incorporated entity called I-Destari under Menteri Besar Selangor Inc (MBI Selangor).
'So if a data centre wants affordable potable water, they can get it from Air Selangor. If they want reclaimed water, they can work with Central Water Reclamation and if they want reused water, we can supply it through I-Destari,' he explained.
Adam added that the final decision often hinges on the operator's environmental commitments and whether they are aiming to qualify for internationally recognised sustainability credits.
'If they need credits overseas, I think they will go towards reclaimed or reused water,' he said.
On another note, Air Selangor plans to replace 300km of ageing pipes annually until 2034, with the figure rising to 400km thereafter — part of its long-term effort to curb water loss and improve supply reliability across Selangor, Kuala Lumpur and Putrajaya.
Adam said this long-term programme is part of the company's strategy to improve supply reliability, as outlined in its 2024 Sustainability Report, which showed that 69% of the year's RM690 million capital expenditure (capex) was channelled to non-revenue water (NRW) reduction initiatives.
He said the 13.9% decline in capex from RM800 million in 2023 reflected the absence of large-scale water treatment plant construction this year, allowing a greater portion of funds to be directed towards mitigating pipe bursts and NRW.
However, Air Selangor expects a shift in spending priorities from 2025 onward, as construction of the Rasau Phase 2 Water Treatment Plant moves forward. The tender process is currently underway and is expected to close in the coming months, although extensions have been requested by bidders.
'Once we award the Rasau Package 2, I would presume that construction of the water treatment plant will form a major percentage of our capex — at least for 2025, 2026 and 2027,' Adam said.
The plant is expected to significantly boost water production capacity, supporting Selangor's rising demand and improving overall supply resilience.
Adam added that Air Selangor's capital allocation will continue to follow operational priorities, striking a balance between network maintenance and long-term infrastructure growth.
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