Malaysia’s first large-scale data centre water reclamation plant opens in Johor

JOHOR BAHRU: Johor has marked another milestone in sustainable technology with the launch of Malaysia’s first large-scale water reclamation plant. This project is specifically for data centre operations, and a rapidly developing industry in the region.

According to New Straits Times (NST), the facility, located in Ulu Tiram, will process municipal wastewater into high-grade, purified water for use in cooling systems — a crucial component of modern data centres.

Bridge Data Centres (BDC) president Eric Fan said construction began around 10 months ago, complete with a full pipeline system to transport treated wastewater to the plant. “The wastewater is processed into high-grade, pure water for use at our data centre,” he said during a site visit, as quoted by NST.

“Overall, this is a demonstration to the Malaysian and Johor governments on addressing water constraint issues for the industry. I think it serves as a benchmark for the data centre sector,” he added.

Fan noted that he believed this is the first plant in Malaysia dedicated to treating water specifically for cooling processes in data centres. The project is now in its final testing and commissioning stages.

A greener alternative to river water

Instead of getting water from rivers, the initiative taps into treated effluent that would otherwise be discharged into waterways. Otherwise, using freshwater resources may place significant strain on local ecosystems and compete with the needs of the residents.

NST reported that the Indah Water Konsortium’s JB-Pelangi Sewage Treatment Plant will supply four million litres of treated water daily to the BDC facility. Johor Special Water Sdn Bhd will handle delivery and coordinate with local authorities to secure the necessary approvals. Deputy Prime Minister Datuk Seri Fadillah Yusof, Johor Menteri Besar Datuk Onn Hafiz Ghazi, and state executive councillor Lee Ting Han were present for the launch.

Why this matters to Singapore

For Singapore, just across the Causeway, Johor’s move signals a more sustainable approach to powering and cooling its rapidly growing data centre sector — a sector closely tied to the Johor–Singapore Special Economic Zone (JS-SEZ). Reliable, environmentally responsible water supply for these facilities means reduced pressure on shared water resources, a long-standing concern between both sides.

By prioritising wastewater recycling, Johor is showing that high-growth industries can be developed without overtaxing natural resources. For both Johor and Singapore, this shift could help preserve water security, improve cross-border environmental cooperation, and reassure investors that the region is committed to green, future-ready infrastructure.

Read also: Johor pioneers wastewater recycling for Tier 4 data centres in nation’s first