🧔♂️ A friendly human may check it before it goes live. More news here
Malaysia’s data center hub tightens standards over water concerns
Johor, a Malaysian state bordering Singapore, will stop approving applications for tier 1 and tier 2 data centers due to concerns over high water consumption.
These lower-tier facilities can use up to 50 million liters of water per day, far exceeding the usage of higher-tier data centers.
Johor aims for all new data centers to comply with stricter sustainability and energy-efficiency standards aligned with international benchmarks.
As of November, the state has approved 51 data center projects with a total investment value of 182.9 billion ringgit (US$44.3 billion), according to a state official.
Of these, 17 are operational, 11 are under construction, and 23 received approval in 2025.
Local authorities have reported rising complaints about water supply disruptions linked to the expansion of data centers in the region.
🔗 Source: Bloomberg
🧠 Food for thought
Implications, context, and why it matters.
Johor focuses on water-heavy data centers and distribution limits
- State officials center the move on water use, especially at sites that rely on evaporative cooling (using water evaporation to remove heat) 1.
- Operators can curb demand with wastewater reclamation (treating and reusing wastewater), dry coolers (air-cooled heat exchangers), or higher-temperature liquid cooling that lowers make-up water (replacement water lost to evaporation) 2.
- By November, Johor cleared 51 projects worth RM182.9 billion (US$44.3 billion), with 17 running and 11 under construction; another source says 42 approvals landed in the second quarter of 2025 3.
- Officials say supply is adequate overall but the water distribution network is the choke point; a sand-mining accident shut four treatment plants, cutting water to more than half of Johor’s 1.7 million residents for up to 12 hours 1.
Implications for projects and suppliers
- If policies curb evaporative or chilled-water cooling, ongoing projects may need design tweaks to meet water-efficiency goals.
- Under way capacity is about 324MW, with 1.4GW committed and 3.4GW early stage, which opens room for efficiency upgrades 4.
- Since late 2024, Malaysia tied incentives to Power Usage Effectiveness (PUE) and Carbon Usage Effectiveness (CUE). It also includes Water Usage Effectiveness (WUE), which nudges builders toward lower WUE options (less water used per unit of IT output) 4.
- Practices that fit Johor include wastewater recycling, dry coolers, and liquid cooling that trims evaporative use 2.
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.