Malaysia Turns Palm Oil Into Water-Free Cooling Liquid For Data Centres

This Malaysian pioneering tech can change how data centres operate on a global scale.

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The Malaysian Palm Oil Board (MPOB) has developed a new cooling liquid for data centres called Sawit EcoTherm

Made from local palm oil, the liquid reduces water consumption and cuts power use in tech hubs, as reported by Bernama. The breakthrough helps lower the environmental cost of Malaysia's rapidly expanding data centre industry.

Conventional water-cooling systems across local data centres are projected to consume 876 million litres of water every day, an amount equal to the daily domestic needs of nearly four million people.

As water regulators raise concerns over potential strains on municipal supplies in key industrial zones, Sawit EcoTherm eliminates the need for evaporative cooling towers.

Server components sit directly in a palm oil-based fluid that continuously absorbs heat in a closed loop. This water-free approach protects local clean water reserves and reduces the risk of supply disruptions for everyday households.

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Image via @ringgitdansen (Instagram)

This liquid cooling comes as artificial intelligence (AI) data centres expand in Johor and Selangor

AI servers produce three to five times as much heat as normal computers. Liquid cooling manages this extra heat easily and removes the need for cooling fans.

This cuts cooling power consumption by 30% to 50%. The liquid relies on up to 95% renewable palm material, breaks down naturally, and contains no toxic chemicals.

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Image via MPOB

Safety and environmental protection provide another major advantage. Made from up to 95% renewable, bio-based materials sourced from Malaysian palm oil, the fluid reduces reliance on petroleum-derived chemicals.

It contains no toxic per- and polyfluoroalkyl substances (PFAS), often called 'forever chemicals', and breaks down naturally in the environment without toxic risks.

For everyday Malaysians, this tech offers direct protection for household water security

Rapid data centre growth in Johor and Selangor has raised public fears of water shortages for local families.

By switching data centres to water-free cooling, water firms can focus on supplying homes, reducing the risk of unscheduled water cuts during dry weather.

The move also brings economic benefits to local communities

Buying palm oil supports local farmers and creates good jobs in green tech. Lower power needs from data centres also protect the national power grid, keeping power bills stable for homes. At the same time, everyday digital tools like online banking and video streaming run without disruption.

MPOB is now working with tech firms and data centre builders to test the liquid in live sites. Backed by government policies, Sawit EcoTherm could help Malaysia lead the world in green tech.

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