KUALA LUMPUR, Feb 10 (Bernama) -- As of January 2026, no data centre investment in Malaysia had been postponed, was at risk of being postponed, or might potentially shift to another country due to water supply constraints, according to the Ministry of Investment, Trade and Industry (MITI).
In a written reply published on Parliament’s website today, the ministry said the government remains committed to ensuring that data centre projects are carried out in an orderly manner.
“This includes ensuring the availability of adequate water resources as well as exploring alternative water sources that are more sustainable for data centre operations nationwide.
“Through strategic collaborations with global technology experts, the government has explored various solutions, including immersion cooling,” it said.
MITI explained that immersion cooling is a method that uses special fluids to directly absorb heat from servers, which can reduce water usage by almost 100 per cent for core cooling processes and fluid-based cooling systems.
The ministry was responding to a question from Aminolhuda Hassan (PH–Sri Gading) about the estimated value of foreign direct investment that has been postponed, is at risk of being postponed, or may possibly shift to competing countries following Johor’s move to defer the development of new data centres until 2027 due to water supply constraints.
MITI added that through these proactive and integrated measures, the government is confident that Malaysia will not only become a base for data centres, but also a competitive and resilient regional digital hub as well as a leading example of balancing industrial progress with environmental sustainability.
“This includes ensuring the availability of adequate water resources as well as exploring alternative water sources that are more sustainable for data centre operations nationwide.
“Through strategic collaborations with global technology experts, the government has explored various solutions, including immersion cooling,” it said.
MITI explained that immersion cooling is a method that uses special fluids to directly absorb heat from servers, which can reduce water usage by almost 100 per cent for core cooling processes and fluid-based cooling systems.
The ministry was responding to a question from Aminolhuda Hassan (PH–Sri Gading) about the estimated value of foreign direct investment that has been postponed, is at risk of being postponed, or may possibly shift to competing countries following Johor’s move to defer the development of new data centres until 2027 due to water supply constraints.
MITI added that through these proactive and integrated measures, the government is confident that Malaysia will not only become a base for data centres, but also a competitive and resilient regional digital hub as well as a leading example of balancing industrial progress with environmental sustainability.