Malaysia developing national water reclamation policy to power data centre growth, says Fadillah

KUALA LUMPUR, June 25 — The government is undertaking a comprehensive study to establish policy and infrastructure foundations for a national water reclamation policy to support the development of data centres, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

He said the government plans to establish the initiative and will subsequently develop new policies and strategies for the future.

“This approach will involve engaging all stakeholders, including those from the ministry, the federal government, state governments, and various non-governmental organisations, among others.

“They will be involved later on,” Fadillah told reporters after delivering his opening keynote address at the 5th World Digital Economy & Technology Summit 2026, here today.

Fadillah, who is also Energy Transition and Water Transformation Minister, said Malaysia currently produces 48.5 million litres per day of reclaimed water and is targeting 118 million litres per day by 2030 for industrial use.

Meanwhile, he said the PETRA Strategic Plan 2026-2030 translates that vision into implementation through 119 programmes and 133 measurable targets, with grid modernisation, digitalisation and demand-side management at its core.

On the supply side, Fadillah said Malaysia has surpassed 13.3 gigawatts of installed renewable energy capacity as of 2025, with solar energy recording the fastest growth.

The government is also developing a 1,000-megawatt solar project to supply clean energy to the Johor-Singapore Special Economic Zone, directly supporting the digital infrastructure ecosystem emerging within that corridor.

“Taken together, these are not isolated initiatives. They form an integrated national response to a challenge that sits at the intersection of energy, water and digital infrastructure,” he added. — Bernama