IWK–JSW pact to meet surging demand and ease pressure on treated water supply
Under the agreements signed today, treated effluent from three sewage treatment plants will be channelled to water reclamation plants serving Bridge Data Centres Malaysia IV Sdn Bhd (BDC) and Computility Technology (Malaysia) Sdn Bhd, while JSW will supply alternative water directly to Dayone Data Centre Malaysia II Sdn Bhd.
IWK chief executive officer Narendran Maniam said the initiative will deliver a reliable non-potable water source for cooling operations, easing pressure on clean water supplies while supporting Malaysia's sustainability agenda.
"This is a significant step forward in sustainable water management. By repurposing treated effluent, we are providing a scalable solution that meets the high-water demands of industries like data centres," he said.
JSW chief executive officer Abdul Rashid Ismail said demand for alternative water sources in Johor has surged, with more than 50 data centre proposals in the past two years.
The company has also received enquiries from major industrial zones including Nusajaya Tech Park, Sedenak Tech Park and Pasir Gudang.
With data centres among the most water-intensive facilities, primarily for cooling, reclaimed water offers a climate-resilient alternative that aligns with environmental, social and governance (ESG) principles.
Formed in 2021, the IWK–JSW partnership aims to scale reclaimed water infrastructure across Johor, positioning the state as a smart, sustainable digital hub and setting a model for industrial water management nationwide.
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