iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
Possibly—but a slowdown is an analyst forecast, not a confirmed state-wide halt. On 8 October 2026, BIMB Securities Research warned that limited water headroom could delay approvals and temporarily moderate data-center construction awards in Selangor in 2027. State officials, meanwhile, said current treated-water supply is sufficient and that projects are assessed against available utility capacity. The risk is therefore one of project timing and approvals, not evidence of a confirmed shortage or cancellation wave.
What the 2027 forecast means
BIMB Securities expects constrained water headroom during 2027–2029 to slow approvals for new water-intensive projects, potentially moderating data-center construction awards in 2027. It expects awards to pick up from 2028 as projects position for future supply additions. The timing reflects BIMB’s cited typical construction lead time of 18–24 months; it is not a report that construction has already slowed. BIMB forecast, reported by The Edge on 8 October 2026.
The key distinction is between a project being proposed, approved, supported by a water assessment, and actually drawing water. A forecast of future demand does not mean that all of that demand is already connected or being consumed.
The Tool Desk
Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Why the estimates appear to conflict
State officials’ reassurance and BIMB’s caution concern different measures and time windows. In August 2026, Selangor executive councillor Ng Sze Han said Air Selangor’s treated-water reserve margin was 16.23%, equivalent to 1,055 million litres per day (MLD), and that surplus supply remained sufficient for data centres and new development. The state also cited 632 MLD of future data-center demand. BERNAMA report on the state assembly statement.
BIMB uses the same 632 MLD demand figure in a different calculation. Its analysis estimates that about 60 MLD of incremental data-center demand could be supported in 2027–2029 while maintaining SPAN’s referenced 15% reserve-margin threshold. That 60 MLD is an analyst estimate based on its assumptions—not an official quota, state cap, or guaranteed allocation. BIMB analysis, as reported by The Edge.
The two reserve-margin figures should not be read as direct contradictions: 16.23% is the state’s reported current treated-water reserve margin, while 15% is the threshold BIMB applies in its model. Nor does either figure alone establish how much water can be delivered to a particular site at a particular time.
Different demand totals cover different scopes
A written parliamentary reply by Energy Transition and Water Transformation Minister Fadillah Yusof, reported in 2026, put projected data-center demand across Selangor, Johor and Negeri Sembilan at 396.65 MLD for 2025–2030, based on approved planning permissions. That is not directly comparable with the 632 MLD figure cited by Selangor and BIMB: the geography, time horizon and project status differ. Media Selangor report on the parliamentary reply.
How Selangor screens data-center water needs
Water availability is part of a broader, conditional approval process. In September 2026, Menteri Besar Amirudin Shari said each data-center application must receive Federal Data Centre Task Force approval, with power supply cleared by Tenaga Nasional Berhad and water supply by Air Selangor. The state said it would not approve projects without adequate utility capacity and encouraged operators to recycle process water. NADMA/Bernama report, 9 September 2026.
Rank #3
Separate state reporting says projects consuming more than 2 million litres per day must submit water availability studies to LUAS, Selangor’s water-management authority. The studies consider whether supply is adequate and whether the project could affect current users. Operators are also required to install abstraction meters and monitoring systems. Recycled industrial water and efficient cooling are encouraged. Media Selangor report, 27 April 2026.
Ng Sze Han said every proposal is considered only after assessment with relevant technical agencies, including LUAS, TNB, local authorities and PLANSelangor. He also said domestic supply is to be prioritised. These safeguards explain how a tight system could affect new-project timing without implying that households, hospitals, schools or public facilities have already faced a data-center-related shortage. Media Selangor.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What could ease pressure—and when
New treatment capacity is central to the longer-term outlook, but published figures and timelines differ. BIMB’s October 2026 analysis assumes Rasau Water Treatment Plant (WTP) Stage 1, listed at 700 MLD, completes in 2027; Langat 2 Phase 2, at 760 MLD, in 2030; and Rasau Stage 2, at 700 MLD, in 2031. Under its assumptions, BIMB estimates data-center headroom of 523 MLD in 2030 and 931 MLD in 2031. These are analyst projections, not guaranteed project allocations. The Edge’s report of BIMB’s analysis.
Recommended Free Tools
The Rasau figures are not consistent across the cited publications. In September 2026, the Menteri Besar described Rasau as expected to provide 350 MLD, with capacity potentially reaching 700 MLD upon full completion of its first phase. Air Selangor’s January 2025 article described the first stage as up to 700 MLD. The sources do not reconcile whether this reflects staged commissioning, differing definitions or changed plans, so the 2027 relief should not be treated as a settled 700 MLD available all at once. NADMA/Bernama, September 2026; Air Selangor, January 2025.
Langat 2 Phase 2 also has different published capacity estimates: BIMB cites 760 MLD, while Air Selangor’s January 2025 article gives 1,130 MLD. The sources reviewed do not reconcile the figures. Air Selangor’s 2025 publication separately projected total system supply capacity rising from 6.035 billion litres per day to 8.765 billion by 2030, and the reserve margin across Selangor, Kuala Lumpur and Putrajaya rising from 11.9% to 17.7%. Those are utility-plan projections, not a site-specific guarantee of data-center water availability. Air Selangor, January 2025.
Demand management can matter as much as new capacity
BIMB says organic water-demand growth of about 3% annually could absorb much of the capacity added by Rasau Stage 1. It identifies lower-water cooling designs, reclaimed-water supply and shifting new projects to other states such as Johor as possible ways to reduce or avoid pressure. These are mitigation options in BIMB’s analysis, not proof that any particular project has adopted them. The Edge’s report of BIMB’s analysis.
For scale only, a 2024 report republished by the Malaysian Investment Development Authority cited around 4.2 MLD for a typical 100 MW data center, while stressing that consumption varies by facility and efficiency. It is broad industry context, not a uniform planning figure for Selangor projects. MIDA republishing The Edge’s report.
Quick Recap
What to watch for in 2027
- Water-study outcomes: whether large proposed facilities can demonstrate adequate supply without harming current users.
- Capacity commissioning: actual delivery dates and usable output from planned treatment works, rather than projected headline capacity alone.
- Reserve-margin assumptions: whether organic demand growth and the reserve floor leave more or less headroom than BIMB models.
- Project design and sourcing: use of efficient cooling, reclaimed water, storage and distribution infrastructure.
- Approval and award timing: evidence that projects are delayed, rescheduled or shifted, rather than treating a forecast as an observed outcome.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
