Malaysia’s Data Center Cooling Revolution: Liquid and Sustainable Technologies Leading Growth in 2025

Malaysia’s data center industry is witnessing rapid expansion driven by escalating demand for digital infrastructure, cloud computing, and AI services. The tropical climate poses significant cooling challenges, making energy-efficient and water-saving cooling technologies critical for sustainable growth. As a result, innovative cooling solutions, particularly liquid-based systems and wastewater reuse, are revolutionizing how data centers operate in Malaysia.

The cooling market in Malaysia is robust and growing, projected to reach approximately USD 210 million in 2025, with a compound annual growth rate exceeding 30% through 2030. While traditional air-based cooling remains prevalent—comprising about 72% of the market—liquid cooling technologies are gaining substantial traction due to their efficiency and scalability. These solutions enable higher-density computing, reduce energy consumption, and contribute to lowering operational costs in hyperscale and edge data centers.

Leighton Asia, a leading construction and engineering firm in the region, recently secured a contract to build a state-of-the-art, high-density liquid cooling-ready data center in Cyberjaya. This facility will feature near-zero water utilization efficiency, employing advanced liquid cooling designs that dramatically reduce water use without compromising performance. The 64 MW data center is the first phase of a larger 256 MW campus development and exemplifies Malaysia’s move toward energy-efficient, sustainable digital infrastructure.

Johor, Malaysia’s emerging data center hub, reflects the sector’s rapid growth and associated resource pressures. The proliferation of hyperscale data centers in Johor has raised concerns over the sustainability of local water supplies, vital for cooling operations. In response, data center operators like Bridge DC are pioneering the use of treated wastewater for cooling, a key step in mitigating freshwater demand and environmental impact. This wastewater cooling approach aligns with national goals to balance digital growth with responsible resource management.

Government regulators, notably the National Water Services Commission (SPAN), have introduced stricter policies and water usage guidelines to promote sustainable water management within the data center sector. Operators are encouraged to deploy water-efficient technologies, including closed-loop and hybrid cooling systems, and to explore alternative water sources such as rainwater harvesting or treated effluent. Enhanced regulatory oversight ensures data centers contribute to Malaysia’s broader sustainability objectives while maintaining reliable service delivery.

Technological innovation in Malaysia’s data center cooling is further boosted by the integration of AI-powered predictive maintenance systems. These enable real-time optimization of cooling operations, improving energy efficiency and anticipating equipment failures before outages occur. Such intelligent solutions are increasingly vital as computing loads intensify and uptime demands escalate.

Malaysia’s digital infrastructure outlook remains optimistic, with growing investments and government initiatives supporting green technology adoption. The convergence of liquid cooling innovations, water reuse efforts, and policy frameworks positions Malaysia as a regional leader in sustainable data center development.

In conclusion, Malaysia’s data center industry is undergoing a cooling technology transformation driven by environmental imperatives and market demands. The adoption of liquid cooling, wastewater reuse, and energy-smart systems, led by prominent projects in Cyberjaya and Johor, enables the sector to balance rapid digital expansion with sustainable resource use.

This responsible approach not only helps lower operational costs and carbon footprints but also secures Malaysia’s status as a premier data center destination in Southeast Asia, ready to meet the demands of the AI era and beyond.