Water supply to data centres only 21% to 28% of initial requests, Fadillah says fees enough to safeguard supply systems

• Energy Transition Minister Datuk Seri Fadillah Yusof revealed that data centres in Selangor and Johor were allocated less than a third of their initial water supply request.

KUALA LUMPUR (Nov 19): Data centres in Selangor and Johor consumed a fraction of the water they requested last year, with the government saying revenue from the centres is sufficient to safeguard the water supply system.

In a parliamentary reply on Tuesday (Nov 18), Energy Transition Minister Datuk Seri Fadillah Yusof revealed that data centres in Selangor and Johor were allocated less than a third of their initial water supply request.

In Selangor, nine data centres requested 5.71 million litres per day (MLD) but were allocated only 1.61 MLD—just 28% of their 2024 demand last year of  5.71 MLD per day.

This compares with the state's total 2024 consumption of 5,308 MLD.

In Johor, 13 data centres requested 29.1 MLD last year but were allocated 6.10 MLD—only 21% of their request. The state's total consumption was 2,001 MLD last year.

Fadillah said projections based on Planning Permissions (KM) show data-centre water demand will rise significantly over the next six years, with Selangor’s demand expected to reach 73.88 MLD by 2030, Johor 384 MLD, and Negeri Sembilan 56 MLD.

The minister was responding to Sri Gading MP Aminolhuda Hassan, who asked if water capital contribution revenue from data centres can cover all construction and maintenance costs.

Fadillah said the total capital contribution for water supply from data centre investments is based on calculations under the Water Services Industry (Deposits, Fees and Charges) (Amendment) Regulations 2025, effective Sept 1.

The capital contribution covers construction of water supply systems from designated connection points to each facility. Maintenance costs, however, are not included in the contribution but are recovered through a special tariff of RM5.30 per cubic metre.

“[Therefore] collections from capital contribution charges and the special tariff are sufficient to fund both the construction and maintenance of water supply systems for data centres,” he said.

He added that no revenue estimates are available at this stage, as most data centres are still in the planning phase.

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