IWK CEO M Narendran announced plans to implement water reclamation projects through strategic collaborations with private sector partners.
“With data centres requiring significant volumes of water for cooling, it is crucial for Malaysia to utilise its water resources sustainably.
“This approach ensures that industry demands are met while preserving the country’s precious resources by utilising alternative water sources without relying on potable water supply,” he said in a statement.
Reclaimed water is treated effluent that undergoes additional purification for reuse in non-potable applications, such as industrial cooling.
IWK processes wastewater into bio effluent, which is further treated for uses like data centre cooling.
Currently, IWK operates a water reclamation plant in Setia Alam in collaboration with Air Selangor, providing four million litres per day of reclaimed water for industrial use.
According to Narendran, the reclaimed water solution aligns with the sustainable development guidelines for data centres that are still in the process of finalisation.
He said this offers an environmentally friendly option for data centres committed to ESG (environmental, social and governance) principles.
“Many international data centres are eager to adopt reclaimed water for cooling purposes. This not only supports sustainability goals but also facilitates foreign investment, fostering economic growth, while promoting responsible resource management,” he said.
He also said that this initiative is in line with the energy transition and water transformation ministry’s recently launched National Water Transformation Plan 2040 (AIR 2040), aimed at strengthening Malaysia’s water sector through sustainable resource management, private sector participation, and advanced technology.
Narendran said IWK is working to expand the use of reclaimed water across Malaysia, having signed a memorandum of understanding with Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) and Syarikat Air Melaka Berhad (SAMB).
IWK is also collaborating with water operators in Negeri Sembilan and Johor on this, he said.
“Through all these partnerships, the potential yield from reusing bio effluent water is expected to be substantial.
“We aim to contribute towards achieving the energy transition and water transformation ministry’s strategic goal of supplying 200 MLD (millions of litres per day) of reclaimed water by 2030,” Narendran said.
He also said that by leveraging the build-operate-transfer (BOT) mode, private companies can design, finance, construct and operate water reclamation plants, ensuring innovation and cost-efficiency.