Kuala Lumpur (VNA) – Malaysia is drafting a national water reclamation policy to expand the use of recycled water for industrial activities, including data centres, while preserving treated water supplies for household consumption.
Addressing the fifth World Digital Economy and Technology Summit (WDET) 2026 on June 25, Deputy Prime Minister and Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof said the policy will be supported by new implementation strategies and extensive stakeholder engagement.
Malaysia currently produces 48.5 million litres of reclaimed water daily and aims to raise output to 118 million litres per day by 2030.
He said treated potable water would continue to be prioritised for public consumption, while reclaimed water processed from wastewater would be supplied to industrial users.
He added Johor has already adopted the model through a collaboration between Indah Water Konsortium (IWK) and water supplier Air Johor, with similar initiatives being developed in Selangor and Negeri Sembilan.
Separately, he said a special task force chaired by the Investment, Trade and Industry Ministry (Miti) has begun evaluating data centre investments based on their energy and water requirements.
According to Fadillah, the task force comprises relevant ministries and agencies, with similar assessment mechanisms being rolled out at the state level before major industrial investments are approved.
Any investment coming into Malaysia must use the latest technology that the country truly needs. It should not simply be another data centre, but one that generates economic returns, contributes to societal well-being, and helps develop our workforce so they are equipped with new technologies, he said.
The task force will ensure that every data centre investment aligns with the availability of reclaimed water and energy supply.
Malaysia will only approve projects if the country has sufficient capacity in terms of both energy and water resources. This framework will also be implemented at the state level, he said./.
