SHAH ALAM – A total of 876 million litres of water per day is needed to support the operations of 104 data centres in Malaysia in 2025, an amount equivalent to the daily water needs of nearly four million people, based on the average domestic consumption of about 228 litres per person per day.
The figure, revealed by the National Water Services Commission (SPAN), highlights the scale of water usage by the rapidly expanding digital industry, in line with the surge of multi-billion-ringgit data centre investments in the country.
It has also raised concerns over whether the sector’s rapid growth can be balanced with Malaysia’s actual water supply capacity.
Malaysia is currently experiencing a surge in data centre investments, driven by the national digitalisation agenda and the country’s strategic position as a regional technology hub.
However, amid this rapid expansion, questions have arisen about whether the industry’s large-scale water consumption can be sustainably managed without affecting public supply.
According to SPAN, data centres are highly intensive industries in terms of both energy and water usage, particularly for cooling systems.
"Based on recorded applications, 876 million litres of water per day are required for 104 data centres in 2025.
"Following the Covid-19 pandemic, the sharp increase in demand for cloud storage, e-commerce, 5G and artificial intelligence applications has accelerated the growth of data centres, directly increasing demand for water supply for cooling purposes," it said in a statement to Sinar.
Data centres are facilities that house thousands of computer servers to store and process digital data, including online transactions, cloud services and artificial intelligence (AI) applications.
Their operations require continuous cooling systems to manage heat generated by servers running around the clock, making water and energy consumption key components of the modern digital industry.
SPAN said water and energy sustainability factors are now given equal priority alongside economic considerations in evaluating data centre development applications.
"Applications can even be rejected if the set thresholds are not complied with," it said.
Overall, Malaysia produces about 18 to 19 billion litres of treated water daily.
However, relatively high domestic water consumption among Malaysians in the region also contributes to rising demand, especially in densely populated areas and economic growth centres.
SPAN said water supply issues are not solely dependent on national totals, but are closely linked to resource distribution, infrastructure capacity and the location of industrial development.
This situation can create pressure in certain states even if the country as a whole still has a sufficient supply.
In this context, states such as Johor, a key focus for regional data centre development, face greater challenges as industrial and domestic demand rise simultaneously within the same areas, requiring more careful coordination of water supply infrastructure development.
"Generally, Malaysia is not currently in a water stress situation.
"However, several areas are experiencing pressure due to shortages of raw water sources and treated water supply, particularly as demand continues to increase faster than the rate of raw water resource and supply infrastructure development," it said.
SPAN added that to ensure sufficient and sustainable water supply, infrastructure development planning must be aligned with future demand projections, along with development control in water catchment areas and river basins to protect the quality and quantity of raw water resources.
"This is important to ensure the national water supply system remains resilient against climate change risks and future development needs," it said.
SPAN also noted that water usage by data centres is assessed comprehensively through specific guidelines, including setting water efficiency levels and requiring the use of alternative sources as part of the development approval process, to ensure that digital economic growth can proceed without compromising long-term water security for consumers.