JOHOR BAHRU: Indah Water Konsortium (IWK) Sdn Bhd and Johor Special Water (JSW) Sdn Bhd have signed three agreements to supply 12 million litres of treated water per day to meet the rising demand from Johor’s expanding data centre industry.
Under the collaboration, treated effluent from three sewage plants would be channelled to two data centres through water reclamation plants at Bridge Data Centres Malaysia IV Sdn Bhd (BDC) and Computility Technology (Malaysia) Sdn Bhd.
JSW would also supply an alternative water source to Dayone Data Centre Malaysia II Sdn Bhd.
“Our collaboration with JSW marks a step forward in sustainable water management. By supplying reclaimed water sourced from treated effluent, IWK is providing a reliable, non-potable solution that meets the high water demands of industries such as data centres,” said IWK CEO Narendran Maniam.
According to an IWK statement on Aug 11, the partnership would supply approximately four megalitres per day (MLD) from the IWK JB-Pelangi Sewage Treatment Plant to the BDC water reclamation plant in Ulu Tiram for processing into high-grade water for data centre cooling operations.
JSW would oversee delivery and liaise with local authorities for the necessary approvals.
“By supplying reclaimed water, we are providing an alternative that reduces reliance on clean water sources. This initiative supports Malaysia’s sustainability goals.”
JSW CEO Abdul Rashid Haji Ismail said demand for sustainable water solutions in Johor had surged, with more than 50 data centres showing interest in the past two years.
“Treated effluent, both in quality and quantity, has proven to be safe and effective for data centre operations.”
Abdul Rashid also said multiple enquiries had been received from Nusajaya Tech Park, Sedenak Tech Park, Nusa Cemerlang Industrial Park, Pasir Gudang and Kempas.
IWK produces over 7,371 MLD of treated effluent nationwide, with Johor generating 1,067 MLD.
The company said Johor’s digital expansion and industrial growth made it a prime location for scaling reclaimed water infrastructure.
Formed in 2021, the IWK-JSW partnership converts treated effluent from sewage treatment plants into sustainable water sources for industrial use.
Both parties said the effort showcased how cross-agency cooperation could unlock new value from existing infrastructure, improve water security and support sustainable industrialisation.
