As Johor, Malaysia, experiences a rapid influx of investments in data centres, the state faces an urgent need to bolster its water infrastructure. This growth brings both opportunities and challenges, particularly concerning the region’s water supply capabilities. While Johor is not currently grappling with severe water scarcity issues like some other Malaysian states, the surge in demand from high-tech industries necessitates proactive measures to ensure sustainable water management.
The Growing Demand for Water
Recent statistics reveal that Johor’s water reserve margin stood at 11.5% in 2022, a figure that has been gradually increasing but still requires attention. The current demand for water is expected to rise significantly, especially with applications for water usage in data centres amounting to over 439.67 million liters per day between 2024 and 2035. Of this, about 316.38 million liters have received approval, highlighting the immediate pressure on water resources.
Local authorities, including the mayor of Johor Bahru, have expressed concerns about the adequacy of water and power supplies. They emphasize that while attracting investments is crucial, it should not compromise the essential needs of local communities. The call for greater collaboration between government and private sectors is essential for addressing these challenges, particularly in constructing new water treatment facilities and improving existing infrastructure.
Infrastructure Development Plans
To meet the growing demand, the state’s water operator, Ranhill SAJ Sdn Bhd, has laid out plans to enhance the water reserve margin to 25% by 2029. Achieving this ambitious goal will require significant investment in water supply infrastructure projects and efficient management of non-revenue water (NRW), which stood at 26.3% in 2022. Reducing NRW is critical, as it represents water produced but not billed to customers, leading to inefficiencies in the water supply system.
The planned upgrades to the Sembrong Dam and the recent awarding of a contract to Ranhill Utilities for NRW reduction efforts are positive steps toward improving water management in the state. However, the effectiveness of these initiatives will depend on timely execution and collaboration among stakeholders.
Sustainable Water Management Practices
Sustainable water management practices are vital for ensuring that Johor can support both industrial demands and the needs of its residents. Local authorities must explore diverse water sources, including desalination, to safeguard against future shortages. This includes considering innovative solutions like building industrial parks that are equipped with adequate power and water infrastructure to attract high-tech industries.
Moreover, water supply strategies should not only focus on meeting current demands but also anticipate future growth. This means investing in long-term infrastructure projects, such as new water treatment plants and the installation of piping systems that can accommodate new developments. As the state prepares for the long term, proactive measures will be crucial to avoid a crisis of supply in the face of rapid industrial growth.
The Role of Private Sector Engagement
The private sector’s involvement will be pivotal in the ongoing development of Johor’s water infrastructure. By partnering with local authorities, businesses can contribute to more efficient resource management and help mitigate the risks associated with increased water demand. Public-private partnerships can drive innovation and investment in sustainable practices, ensuring that Johor remains an attractive destination for future data centre investments.
Conclusion
As Johor positions itself as a hub for data centre investments, the need for robust and sustainable water infrastructure cannot be overstated. By addressing the challenges of water supply and collaborating with private sectors, Johor can ensure that its growth does not come at the expense of its residents’ needs. The balance between industrial development and community welfare will be essential for the state’s sustainable future. Investing in water infrastructure now will not only support Johor’s burgeoning tech industry but also secure the region’s water supply for generations to come.
