2 days ago
- Business
- Independent Singapore
Johor pioneers wastewater recycling for Tier 4 data centres in nation's first
JOHOR BAHRU: Johor has taken a national lead by becoming the first Malaysian state to use wastewater recycling in Tier 4 data centre operations, blending cutting-edge technology with sustainable water management.
Mentri Besar Datuk Onn Hafiz Ghazi said the achievement cements Johor's position as the country's top data centre hub while driving both economic growth and environmental responsibility.
According to The Star , he noted that more than 50 data centre construction applications have been received to date, with 42 already approved by the second quarter of 2025. These projects represent RM164.45 billion (S$50 billion) in total investments and are expected to create over 6,000 jobs for Malaysians, especially Johoreans. Balancing growth with sustainability
Speaking at the Alternative Water Usage Recognition Ceremony on Aug 11, Onn Hafiz noted that the state is reviewing seven new data centre applications, which together could require up to 76 million litres of water daily. With such significant demand, he stressed the need for growth to go hand in hand with careful resource management.
He explained that the Johor Data Centre Development Coordination Committee, co-chaired by three state executive councillors, was set up to oversee projects through a transparent review process. The focus, he said, is on ensuring that facilities adopt renewable energy sources and alternative water solutions, reducing pressure on Johor's potable water supply.
Johor Special Water (JSW), a subsidiary of Permodalan Darul Ta'zim Sdn Bhd, has exclusive rights under a 2011 agreement with national sewerage company Indah Water Konsortium (IWK) to develop wastewater reclamation projects for industrial use. Treated wastewater is being channelled into data centre cooling systems alongside raw water and desalinated water.
Deputy Prime Minister Datuk Seri Fadillah Yusof commended the move, calling it 'a step forward in ensuring environmental sustainability and resource security' and encouraging other states to follow Johor's lead. Turning sewage into a digital asset
As of Jun 30, JSW had received requests from operators for 136 million litres of alternative water supply per day. This week, three agreements were formalised to expand the use of reclaimed water in data centre operations.
The first agreement between IWK and JSW will see treated effluent from sewage plants sent to reclaimed water production facilities. The second, involving JSW, Bridge Data Centres and Computility Technology, covers the use of reclaimed water for cooling systems, with one facility already in operation in Ulu Tiram and another scheduled to open in Iskandar Puteri by December. The third agreement, between JSW and DayOne Data Centres, will supply raw water from the Tebrau River to a new data centre in Kempas Tech Park, expected to start operating in November.
Onn Hafiz said these initiatives will reduce reliance on treated water for industrial purposes and reinforce Johor's reputation as a leader in green industry practices. Why it matters for Singaporeans
For Singapore, Johor's wastewater recycling drive is more than just a sustainability milestone across the border. The state plays a crucial role in the Johor–Singapore Special Economic Zone (JS-SEZ), where data centres are a fast-growing sector. A sustainable and dependable water supply means these facilities — many of which serve regional clients, including Singapore-based firms — can grow without placing additional strain on shared water resources.
For Singaporean investors and tech companies, it's also a signal that Johor is serious about building a resilient, future-ready digital infrastructure that can meet global demand while protecting the environment both countries share.
Read also: Singapore and Johor partner to train talent for special economic zone, unveil Ascott Coronation Square
