Singapore semiconductor and data centre sectors cut heavy water usage for cooling operations to ease pressure on limited water resources in SG

SINGAPORE: As Singapore’s appetite for semiconductors, cloud computing and artificial intelligence grows, some of the country’s biggest water users are finding ways to consume less of it.

Chip production requires extremely clean water, while data centres need constant cooling to keep servers running safely. As such, semiconductor manufacturers and data centre operators are stepping up efforts to reduce water use, especially in cooling and production processes, Channel NewsAsia (CNA) reports (June 18).

Water recycling helps cut demand on Singapore’s supply

At United Microelectronics Corporation (UMC)’s wafer fabrication plant in Pasir Ris, around 10,000 cubic metres of NEWater are used daily. The water is first treated into ultra-pure water for chipmaking.

Producing semiconductor wafers involves about 1,000 manufacturing steps, some of which require ultra-pure water to prevent contamination from even the smallest impurities. After use, much of the water is collected, treated again and reused.

Thomas Tey, Senior Fab Director at UMC Singapore, said the company focuses on improving efficiency at every stage of production because even small reductions can yield significant water savings.

One of the firm’s key strategies is to separate wastewater into different streams rather than treating everything the same way. The plant operates nearly 20 different wastewater channels, allowing water to be cleaned to varying standards and reused for specific purposes.

Some recycled water is returned to manufacturing processes, while other portions are used for support functions such as cooling towers. The approach allows UMC to recover nearly 70 per cent of the water it consumes.

According to the company, its recycling efforts recover about 3.9 million cubic metres of water each year. That is roughly enough to fill 1,560 Olympic-sized swimming pools.

UMC is also studying newer treatment methods, including reverse osmosis and electrodeionisation, to further improve water recovery and produce higher-quality recycled water.

Smarter cooling systems reduce water and energy use

Data centres face a different challenge. These facilities provide services ranging from video streaming to AI applications, generating large amounts of heat that must be continuously removed.

Cloud computing company OVHcloud has adopted a cooling method that sends chilled water directly to processors rather than cooling entire server rooms with traditional air-conditioning systems.

The company said this targeted approach uses less water than conventional methods and improves overall efficiency. Thiru Prakassh, Regional Data Centre Lead for Asia Pacific at OVHcloud, said the company also uses sensors throughout its facilities to track server activity, equipment loads and cooling performance.

The data is analysed using AI tools to predict demand and adjust water use more precisely throughout the day.

OVHcloud estimates that these systems could reduce water consumption by up to 30 per cent and power use by up to 50 per cent. The firm is also exploring the use of local weather data to fine-tune cooling requirements in real time.

Water efficiency is becoming a business necessity

Singapore has long treated water as a strategic resource, making efficiency important across all sectors. Chipmakers and data centre operators face many challenges as demand for advanced technologies continues to rise, but the resources needed to support them are not unlimited.

As more AI systems, cloud services, and semiconductor facilities come online, reducing water use is becoming more than an environmental goal. It is increasingly a business necessity.

Where every drop counts, finding ways to produce more while using less may prove just as important as the technologies being built for Singapore.

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