ISKANDAR PUTERI, Feb 7 — The Johor government plans to review the potential use of groundwater as an alternative water source, particularly to meet the needs of the rapidly growing data centre industry in the state.
State Public Works, Transport, Infrastructure and Communications Committee chairman Mohamad Fazli Mohamad Salleh said the proposal had previously been raised in 2025 following an earlier study conducted about five years ago that used older technology, which may no longer be relevant.
Mohamad Fazli said the findings of the study at the time showed that Johor had limited groundwater resources compared to northern states such as Perak and Kedah.
“Previously, we felt it was less suitable because earlier studies indicated that Johor’s groundwater resources were limited and much smaller compared to existing water catchment basins.
“Perhaps when the earlier study was conducted, the available technology was still limited, which is why Johor appeared to have little to no groundwater. Therefore, there is a proposal for this study to be reviewed using more advanced technology,” he said in a recent interview with Bernama.
Previously, Bernama reported the views of the director of the Universiti Teknologi Malaysia (UTM) Campus Sustainability Centre, Prof Dr Mohd Fadhil Md Din, who suggested that data centre companies planning to develop facilities in Johor should explore the potential of groundwater to reduce pressure on the public water supply system.
Mohd Fadhil said that long-term reliance by data centres on public water sources risks increasing pressure on domestic supply and other industries, particularly when the development of these water-intensive facilities occurs in clusters.
Meanwhile, Mohamad Fazli said the state government fully understands public concerns over the adequacy of water and electricity resources to support data centres in the state, but stressed that systematic planning is in place to address the issue.
He said this is reflected in the establishment of the Johor Data Centre Committee, chaired by Datuk Mohd Jafni Shukor, and the Special Technical Data Centre Committee, which he chairs.
From a technical standpoint, Mohamad Fazli said that every data centre company intending to build facilities in Johor must comply with various stipulated requirements, including meeting the prescribed Power Usage Effectiveness (PUE), while Water Usage Effectiveness (WUE) must be below 1.8, in line with standards applied in Singapore.
He also noted that several data centres are now operating with minimal or even zero water usage, although such approaches come with advantages and disadvantages, including higher electricity consumption.
“To address this issue, the state government is utilising alternative water sources from the industrial sector. We also have various water sources and have signed a Memorandum of Understanding (MoU) with Indah Water Konsortium (IWK) to ensure that wastewater is not wasted, but instead treated and reused,” he said.
He added that data centres are also encouraged to adopt the latest technologies, such as systems that allow water to be reused for up to six cycles, which also bring operational efficiency benefits.
He said that utility pressure, whether on water or electricity, is not caused solely by data centres, but also by other industries, in line with the rapid development of the Johor-Singapore Special Economic Zone (JS-SEZ), prompting the state government to undertake various early planning measures.
“For example, electricity supply should not be an issue as we are directly connected to the national grid. This means we do not rely solely on power sources in Johor, but can also draw supply from power generation facilities in other areas,” he said.
He added that there is also a growing trend in the use of green energy, and that data centres and certain industries are utilising available carbon credit schemes, including those offered through Tenaga Nasional Berhad (TNB).
As of the second quarter of 2025, a total of 42 data centre projects have been approved in Johor, reinforcing the state’s position as Malaysia’s leading destination for data centre investment. — Bernama
