JOHOR BARU: In response to Malaysia’s accelerating digital infrastructure growth, national sewerage company, Indah Water Konsortium (IWK) Sdn Bhd and Johor Special Water (JSW) Sdn Bhd have entered into a strategic collaboration on Aug 11, to develop reclaimed water solutions that support the growing water demand of the data centre industry in Johor.
IWK and JSW signed three agreements involving three sewerage treatment plants, to supply alternative water to two data centres in Johor.
Treated effluent will be supplied through an integrated distribution system to water reclamation plants (WRP) at Bridge Data Centres Malaysia IV Sdn Bhd (BDC) and Computility Technology (Malaysia) Sdn Bhd, while JSW will supply an alternative water source directly to DayOne Data Centre Malaysia II Sdn Bhd (DayOne).
Under this agreement, IWK will supply 12 million litres per day (MLD) of treated effluent, sourced from its sewage treatment plants, to the WRP built by BDC and Computility.
“Our collaboration with JSW marks a significant step forward in sustainable water management. By supplying reclaimed water sourced from treated effluent, IWK are providing a reliable, non-potable solution that meets the high water demands of industries like data centres. This initiative supports Malaysia’s sustainability goals and reduces pressure on clean water resources,” said IWK chief executive officer (CEO) Narendran Maniam.
This partnership will supply approximately 4MLD of treated effluent from IWK’s JB-Pelangi Sewage Treatment Plant (JBR005) to BDC’s WRP in Ulu Tiram. JSW will oversee the delivery of treated effluent and coordinate with local authorities for all approvals. The treated effluent is to be reclaimed into high-grade water quality for use in BDC’s cooling operations.
“With Johor experiencing a surge in water demand, driven by interest from over 50 data centres in the past two years, JSW has been working closely with IWK to deliver viable and sustainable water solutions. Treated effluent, both in quality and quantity, has proven to be safe and effective use in data centre operations,” emphasised JSW CEO Abdul Rashid Haji Ismail.
IWK produces over 7,371MLD of treated effluent from sewage treatment plants across the country, with 1,067MLD generated in Johor alone. With growing market demand for sustainable water solutions in Johor, the potential for scaling reclaimed water infrastructure is significant.
“We have already received multiple enquiries for reclaimed water supply from other data centre and industrial zones, including Nusajaya Tech Park, Sedenak Tech Park, Nusa Cemerlang Industrial Park, Pasir Gudang and Kempas. This clearly demonstrates Johor’s strong positioning as an emerging digital hub” added Abdul Rashid.
With data centres ranked among the most water-intensive facilities, primarily due to cooling needs, reclaimed water offers a scalable, climate-conscious alternative to conventional sources.
Established in October 2021, the partnership between IWK and JSW, a wholly owned subsidiary of Permodalan Darul Ta’zim Sdn Bhd—the investment arm of the Johor State Government, aims to repurpose treated effluent from sewage treatment plants (STPs) into reclaimed water for non-potable industrial uses.
The IWK-JSW collaboration exemplifies how cross-agency partnerships can unlock new value from existing infrastructure while advancing sustainable development. This initiative plays a key role in Johor’s transformation into a smart, sustainable digital hub.
By repurposing treated effluent as a valuable resource, it promotes responsible water management, enhances climate resilience, supports sustainable industrialisation, and aligns with Malaysia’s sustainability goals.
