JOHOR BAHRU: Johor’s transformation into Malaysia’s data centre capital is powering ahead — but it’s also going to be thirsty work. By 2030, the state’s data centres are expected to gulp down 368 million litres of water a day, compared to just 20 million litres now. That’s an 18-fold increase, according to BIMB Research, as reported by The Star.
The surge comes as the number of facilities is set to jump from 17 to 52, and those giant server farms need constant cooling, which uses a lot of water.
Johor is already pouring money into the problem: RM4.4 billion (S$1.34 billion) for water treatment and distribution upgrades, plus RM2.4 billion for new raw water sources. But The Star reports that even with those investments, the state is still looking at a shortfall of around 570 million litres per day by 2030.
BIMB Research didn’t mince words: “Without intervention, the additional load from hyperscale cooling requirements risks exacerbating supply vulnerabilities and crowding out other industrial and domestic users.”
Why reclaimed wastewater is suddenly in the spotlight
With 24.1% of Johor’s treated water lost before it even reaches customers (so-called “non-revenue water”), alternative sources are no longer optional — they’re essential. BIMB Research, cited by The Star, says scaling up reclaimed water will mean big spending on water reclamation plants, pipelines, and smart metering systems.
One project already making waves is the Indah Water Konsortium–Johor Special Water partnership, which will supply up to 12 million litres per day of recycled water to data centres. And with the new dedicated data centre tariff band (RM5.33 per cubic metre in Johor), BIMB Research says there’s now a clear way to monetise reclaimed water supply from day one.
Read related: Malaysia’s first large-scale data centre water reclamation plant opens in Johor
Why Singapore should care
This isn’t just Johor’s headache. Singapore gets part of its water from Johor under long-standing agreements — so if industrial demand in Johor starts biting into supply, it could affect cross-border water planning.
For Singapore, there’s another angle: many tech giants and hyperscale operators that couldn’t expand here because of land and power constraints are setting up shop just across the Causeway. These facilities will need reliable water to keep running, and if Johor struggles, it could hurt the regional digital economy both countries depend on.
Simply put: if Johor’s water runs low, it’s not just taps that could feel the pinch — it’s the entire tech ecosystem linking Singapore and Malaysia.
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