Johor to build four new water treatment plants to meet rising data centre demands.
The Johor government, through Ranhill SAJ Sdn Bhd, has announced plans to develop four new water treatment plants (LRAs) at a cost of RM1.41 billion (S$421.86 million). These projects, located in Kulai, Johor Bahru, and Pontian, aim to meet the growing water demand from the state’s burgeoning data centre industry and ensure stable domestic water supplies.
With over 50 data centres under application, construction, or operational phases, Johor’s water demand has surged. The Johor-Singapore Special Economic Zone (JS-SEZ) is further accelerating this demand. The state government has responded with a comprehensive plan to expand water treatment capacity.
RM1.41 Billion Investment for New Water Plants
The four new LRAs include two facilities in Kulai: the Semangar LRA (50 MLD capacity at RM70 million) and the Semangar 3 LRA (200 MLD capacity at RM990 million). Johor Bahru will host the Layang 2 Phase 2 LRA (160 MLD at RM200 million), while Pontian will see the Kayu Ara Pasong LRA (90 MLD at RM150 million).

Photo: Bernama
Enhancing Domestic Water Supply Stability
The initiative aims to ensure that rising industrial water demands do not disrupt domestic water supplies. These developments are part of Johor’s broader strategy to balance infrastructure growth with sustainability.
Addressing Aging Water Pipes
Since January, Johor has replaced 76.5 km of old water pipes across seven districts, including Pontian (24.1 km), Johor Bahru (19.2 km), and Segamat (14.4 km). Over the past decade, a total of 1,690.49 km of pipelines have been replaced.
Read More: Johor Emerges as AI Data Center Boomtown
JS-SEZ and Economic Opportunities
The establishment of the Johor-Singapore Special Economic Zone has attracted significant investments in data centres, spurring infrastructure projects like these water treatment plants. The JS-SEZ is expected to drive economic growth, create jobs, and attract multinational companies.
Environmental Concerns and Renewable Energy Push
Critics warn of potential environmental impacts from data centre operations, including high energy and water consumption. The Johor government has pledged to integrate renewable energy solutions into its infrastructure to mitigate these concerns.
Johor’s RM1.41 billion investment in water infrastructure underlines its commitment to supporting industrial growth while safeguarding domestic resources. The initiative not only addresses immediate demands from data centres but also sets the stage for long-term economic and environmental sustainability.
Johor invests RM1.41 billion (S$421.86 million) in four water treatment plants to support data centre growth and secure domestic supplies. These projects, spanning Kulai, Johor Bahru, and Pontian, align with the state’s vision for sustainable infrastructure and economic expansion.
Sources: Malay Mail, Bernama











