THE Ministry of Energy Transition and Water Transformation (PETRA) has taken a major stride towards sustainable water management and circular economy leadership with the signing of three landmark agreements establishing the nation’s first integrated reclaimed water supply chain for data centre operations in the Klang Valley.
The agreements were signed in the presence of Deputy Prime Minister and Minister of Energy Transition and Water Transformation, Datuk Seri Fadillah Yusof, Selangor Menteri Besar Datuk Seri Amirudin Shari, and Dr Saji PK, Director for Data Centre Operations, AWS Asia Pacific, Japan and China.
The event marks a significant advancement in Malaysia’s sustainable water and digital infrastructure agenda.
Under the arrangements, Air Selangor entered into an industrial reclaimed water supply agreement with Amazon Web Services (AWS), marking the first use of reclaimed water in the operation of data centres in the Klang Valley.
A second agreement between Central Water Reclamation Sdn Bhd (CWR) and Air Selangor formalised the bulk water supply for efficient reclaimed water production through a dedicated reclamation plant.
The third, between Indah Water Konsortium (IWK) and CWR — a joint venture between Air Selangor and IWK — provides for the supply of treated effluent to be further processed into reclaimed water.
In his keynote address, Fadillah described the collaboration between federal and state governments, utilities and the private sector as “transformative”, demonstrating how federal vision and state-level implementation could yield tangible national outcomes.
He said: “The initiative aligns with PETRA’s Water Sector Transformation 2040 (AIR 2040) framework, which treats effluent as a renewable asset to strengthen Malaysia’s water resource resilience.”
PETRA also acknowledged AWS’s contribution to advancing national sustainability goals through strategic partnerships, noting that the collaboration represents an effective model for public–private cooperation in supporting Malaysia’s broader development priorities.
“To ensure that Malaysia’s energy and water transitions progress in a coordinated, efficient and sustainable manner, PETRA is refining the legal and policy frameworks to encourage wider adoption of reclaimed water,” Fadillah said.
He added that structured pathways were being created for industries, including data centres, to procure renewable electricity through initiatives such as the Corporate Renewable Energy Supply Scheme (CRESS), Green Electricity Tariff (GET) and rooftop solar programmes under the self-consumption model.
The initiative directly supports the MADANI Economy vision by linking industrial expansion with environmental sustainability.
PETRA aims to strengthen Malaysia’s water security and circular economy by connecting wastewater management to industrial demand — positioning the nation as a model for integrated water and energy transition in the region. - November 13, 2025
