As AI workloads surge and digital infrastructure races ahead, data centers in APAC are, literally, feeling the heat. With cooling and water use under the microscope, regulators, investors, and communities alike are asking tougher questions. And in 2025, water is no longer just a supporting act. It’s center stage.
Best put by Ms. Vivian Wong, Lead Analyst for DC Byte:
“Southeast Asia’s data centre sector is expanding at an unprecedented pace, driving greater consumption of power and water. The rise of AI and training facilities is further accelerating the deployment of advanced GPUs with higher rack density requirements across the region, intensifying the overall demand for resources. In Malaysia, one of the first markets to adopt GPU deployments at scale, authorities have called on operators to adopt sustainable practices, and the industry has responded with initiatives in water recycling, reclamation, and alternative sourcing. This alignment sets a strong precedent for the wider region, where long-term digital infrastructure growth will hinge on water sustainability and resource resilience.”
Here’s a splash into the top trends shaping the way data centers across the region think about water and cooling.
1. Water Usage Effectiveness (WUE) Becoming a Regulated Metric
Reporting standards are changing across APAC. They are moving beyond voluntary reporting and towards mandated or incentivized WUE disclosures.
- Singapore has integrated WUE requirements into its Green Mark certification system for new data centers (BCA Singapore).
- Japan is including WUE as part of broader ESG metrics in government-backed initiatives (METI Japan).
- India and Thailand have issued incentives and policies encouraging sustainable water use and reporting in industrial operations (Thailand BOI, India MoEFCC).
As WUE joins PUE (Power Usage Effectiveness) as a critical benchmark, operators are increasingly expected to demonstrate continuous water efficiency improvements, not just energy efficiency.
2. Reclaimed and Non-Potable Water Gaining Traction
Faced with water stress and competing demands from agriculture and domestic use, several countries in our region are making waves in the use of reclaimed and non-potable water for cooling:
- Vietnam has initiated industrial reuse programs for treated effluent in zones like Ho Chi Minh City (World Bank Vietnam).
- Malaysia is expanding its National Water Reclamation Plan to encourage effluent reuse (SPAN Malaysia).
- Indonesia has outlined industrial reuse provisions in its 2023 Water Resources Law (Indonesian Government Regulation No. 122/2023).
For data centers, this means more robust treatment systems must be used to process and tame diverse water sources without compromising cooling performance. A shining example is Bridge Data Centres’ work in Malaysia as explained by their CEO, Mr. Eric Fan:
“With Johor emerging as one of Southeast Asia’s fastest-growing data centre markets, we recognise the critical importance of sustainable water stewardship. At Bridge Data Centres, we have taken a pioneering step through our partnership with Johor Special Water to develop Malaysia’s first large-scale Water Reclamation Plant dedicated to supporting data centres. Harnessing advanced treatment technologies, the facility reduces reliance on municipal potable resources by as much as 30% and creates a scalable model for sustainable digital infrastructure across APAC.
This commitment is part of our broader ESG-first strategy. Our MY06 Campus 1 recently earned the BCA Green Mark Platinum under the GMDC:2024 framework, underscoring our commitment to green innovation. Beyond water, we are proud members of RE100 with a pledge to source 100% renewable electricity by 2040, and our near-term climate targets have been validated by the Science Based Targets initiative (SBTi), ensuring our growth remains aligned with the 1.5°C pathway. Together, these milestones reflect our vision to future-proof digital infrastructure, delivering high performance, operational resilience, and environmental responsibility across Malaysia and beyond.”
3. Hybrid and Closed-Loop Cooling Systems on the Rise
Operators are beginning to explore hybrid systems that combine electrochemical treatment with dry or adiabatic cooling.
This dual approach reduces water consumption and improves corrosion, scaling, and biofouling control, while supporting the operational resilience needed in high-density compute environments (Amazon Web Services).
“This ongoing collaboration between Hydroleap and AWS, which started nearly two years ago, has helped us to improve and fine-tune our patented electrooxidation technology to be an effective tool for meeting AWS’s water efficiency goals,” said Dr. Mohammed Sherafatmand, founder and chief executive officer of Hydroleap about the future of hybrid systems.
Closed-loop systems, where water is recirculated and treated onsite, are being adopted to meet both regulatory and ESG expectations. These systems reduce overall drawdown from municipal supplies and are often paired with smart monitoring tools for predictive maintenance (Uptime Institute).
4. Investor ESG Pressure is Real and Rising
Sustainability is no longer a “nice-to-have” for data center investments. Water usage disclosures have become standard practice in the ESG due diligence processes of institutional investors.
According to CBRE, hyperscale developers are now expected to report:
- Efficiency (WUE)
- Risk exposure to water-stressed regions
- Water source types (potable or non-potable)
- Wastewater management practices
Data center operators are also expected to articulate clear water stewardship strategies, with transparent reporting and measurable impact.
5. Tech Adoption is Accelerating
A wave of new technologies is changing how data centers manage water:
- Liquid immersion cooling is being trialed at scale for AI and high-performance compute workloads (DCD). This trend has picked up quicker in overseas markets quicker than it has here in Asia Pacific.
- Condensate recovery systems are being integrated into HVAC retrofits to reduce net water usage (ASHRAE).
- Wastewater reuse technologies, including electrochemical treatment, are enabling circular water systems with less chemical dependency and greater reliability.
Key Takeaways
Most APAC data centers still rely on evaporative cooling towers and traditional water-based systems. But in water-stressed regions like Johor, Batam, Japan, and South Korea, pressure is mounting. Regulations are tightening, communities are watching, and investors are asking sharper questions.
The shift is clear: performance and stewardship must go hand in hand. Operators need to rethink how water is sourced, treated, and reused.
At Hydroleap, we’re all about helping data centers make that leap. Our smarter, chemical-light water treatment systems cut costs, support ESG goals, and keep sustainability practical.
Find out in more depth at the link below: