Malaysia

Water infrastructure expansion plan underway as Johor emerges as data centre hub

The plan is to meet rising demand driven by rapid industrial growth and the expansion of data centres in the state

Updated 3 months ago · Published on 24 Jun 2026 11:33AM

Water infrastructure expansion plan underway as Johor emerges as data centre hub
The government is to roll out a long-term water security strategy for Johor, including new dams, treatment plants and recycled water initiatives - June 24, 2026

THE government is strengthening long-term water supply planning in Johor as the state’s rapid industrial expansion, particularly its emergence as a regional data centre hub, drives significantly higher demand for water resources.

Energy Transition and Water Transformation (PETRA) Minister Datuk Seri Fadillah Yusof told the Dewan Rakyat on Wednesday that a comprehensive strategy is being implemented to safeguard Johor’s water security, including new infrastructure development and greater reliance on alternative water sources.

The government said current raw water abstraction in Johor stands at 2,052 million litres per day, according to the National Water Services Commission (SPAN), and is expected to rise further in line with industrial and urban development.

The government is adopting a long-term approach to ensure the water security of Johor remains safeguarded, in line with the rapid growth of the industrial sector, urban development and strategic investments, including data centres.

"Based on the report by the National Water Services Commission (SPAN), the current raw water abstraction in Johor stands at 2,052 million litres per day (MLD). In this regard, the government is intensifying efforts to strengthen raw water resources and the water supply system in Johor through the implementation of various strategic projects, including proposed dam development, river-side storage (TAPS), barrages and raw water conveyance infrastructure," Fadillah, who also serves as Deputy Prime Minister II, said.

To meet future demand, the government is also upgrading water supply systems and expanding treatment capacity in stages based on projected consumption trends.

It said four water treatment plant projects are currently being implemented under funding from Pengurusan Aset Air Berhad (PAAB) to strengthen treated water supply capacity in the state.

In addition to conventional infrastructure, the government is increasingly turning to reclaimed water as a key component of long-term water security, particularly for high-water-use industries such as data centres.

"The government also views reclaimed water as an important component of long-term water security strategy, especially for industrial sectors with high water consumption needs such as data centres.

“This approach can help reduce reliance on treated water sources and optimise the use of existing water resources in a more sustainable manner," he said.

The ministry cited an ongoing collaboration between Indah Water Konsortium (IWK) and Johor Special Water (JSW), under which 12 million litres per day of high-quality reclaimed water is currently supplied for use in data centre cooling systems in Johor.

"As an example, through a strategic collaboration between Indah Water Konsortium (IWK) and Johor Special Water (JSW), 12 MLD of high-quality reclaimed water is currently being supplied for use in data centre cooling systems in the state of Johor," he added.

Fadillah said the combination of new water resource development, expanded treatment capacity and increased use of alternative water sources will ensure Johor is able to continue meeting demand to support economic growth and the well-being of the population in the future.

"Through a combination of new water resource development, increased water supply system capacity, development of water treatment plants and the use of alternative water sources, the government is confident that Johor’s water supply needs will continue to be met to support economic growth and public well-being in the future," Fadillah explained. - June 24, 2026

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