Three agreements establishing Klang Valley’s first integrated reclaimed-water supply chain for data centres were officially signed on Thursday in a ceremony overseen by the Ministry of Energy Transition and Water Transformation (Petra).
The agreements involve Air Selangor, Amazon Web Services (AWS), Indah Water Konsortium (IWK), and Central Water Reclamation Sdn Bhd (CWR), and were signed in the presence of Deputy Prime Minister and Petra Minister Datuk Seri Fadillah Yusof, Selangor Menteri Besar Datuk Seri Amirudin Shari, and AWS Asia-Pacific data centre operations director Dr Saji PK, Petra said in a statement.
The initiative comes amid growing calls for data centres to diversify water sources through alternatives such as reclaimed water, rainwater harvesting, and recycled effluent, as Malaysia has seen a surge in water-intensive data centre projects over the past three years.
Under the first agreement, Air Selangor will supply industrial reclaimed water to AWS, marking the first time reclaimed water will be used for data centre operations in Klang Valley.
The second agreement formalises a bulk water supply arrangement between Air Selangor and CWR — a joint venture between Air Selangor and IWK — allowing reclaimed water to be produced and distributed through a dedicated reclamation facility.
The third agreement sees IWK supplying treated effluent to CWR, which will then process it into reclaimed water for distribution.
Datuk Seri Fadillah described the collaboration between federal and state authorities, utilities, and industry players as a clear example of how federal vision and state-level execution can deliver tangible benefits to Malaysians. He highlighted that the project aligns with Petra’s Water Sector Transformation 2040 (AIR 2040), which promotes treated effluent as a renewable resource to enhance national water security.
To encourage wider adoption across industries, Petra said it is updating the legal and policy framework for reclaimed water while continuing to support initiatives such as the Corporate Renewable Energy Supply Scheme (CRESS), Green Electricity Tariff (GET), and rooftop solar self-consumption programs to help energy-intensive sectors reduce carbon emissions.
Malaysia has become a key regional hub for data centre investments, but the substantial water requirements — mainly for cooling high-heat IT equipment — have raised concerns over the long-term sustainability of the sector.
