Water reuse drive to protect Malaysia’s water supply as data centres fuel demand

Malaysia is developing a Water Reuse Policy to safeguard water resources amid growing demand from industries like data centres, according to Deputy Energy Transition and Water Transformation Minister Datuk Seri Abdul Rahman Mohamad. The policy aims to allow water-intensive industries to safely reuse water, relieving pressure on treated supplies and enabling economic expansion without straining domestic needs.

Speaking at the Sustainability Environment Asia (SEA) 2026 in Malaysia, Abdul Rahman stressed that water security, resource efficiency, and energy sustainability are now strategic priorities for the nation's economic resilience and competitiveness. He highlighted the government's three key priorities: strengthening water security, enhancing water resource productivity, and accelerating the transition to cleaner energy.

The Water Reuse Policy is a crucial component of these efforts, enabling industries with high water demands to practice safe reuse, thereby preserving treated water for domestic use. The minister emphasized the importance of integrating sustainability into Malaysia's economic and infrastructure planning, moving away from the conventional "take, use, and dispose" approach towards a circular economic model.

This shift aligns with Malaysia's National Energy Transition Roadmap, which seeks to increase clean energy use, bolster energy security, and generate higher-value economic opportunities. The minister also underscored the necessity of collaboration among the government, industry, and stakeholders to turn sustainability policies into practical solutions.