The Malaysian Palm Oil Board (MPOB) has developed Sawit EcoTherm, a palm oil–derived, non-conductive immersion-cooling fluid designed for use in high-density data centers. This innovation represents a potential niche growth area for the domestic palm oil industry, although experts suggest it is unlikely to significantly impact crude palm oil (CPO) demand or prices in the short term.

According to research from Phillip Capital, Sawit EcoTherm offers a "value-over-volume" opportunity, focusing on converting palm oil into higher-value chemical and specialty fluid products rather than simply increasing bulk CPO consumption. The fluid is formulated as a specialty dielectric liquid that meets the electrical, thermal, cleanliness, and material compatibility requirements necessary for immersion cooling technology used in advanced data centers.

The technology aims to position palm-based products within the growing artificial intelligence and data center ecosystems by providing a customized cooling solution. However, the fluid differs from conventional edible palm oil, targeting a specialized industrial application.

While the formulation and readiness for technology transfer have been achieved, broader commercial-scale production and deployment depend on forming partnerships with industry players and further validation of the fluid’s performance within data center environments.

Phillip Capital noted that the principal value of Sawit EcoTherm lies in downstream activities such as technology licensing, specialty fluid manufacturing, system integration, and related services, rather than in increasing upstream CPO volumes. A preliminary assessment from an MPOB research facility visit indicated that a 100-megawatt data center may require between 0.8 to 1.5 million liters of the cooling fluid initially, equivalent to 800 to 1,500 tonnes.

Extending this estimate to Malaysia’s planned and under-construction data center capacity of 4.6 gigawatts suggests an initial demand equivalent to 35,000 to 69,000 tonnes of CPO. This amount is less than 0.4 percent of Malaysia’s annual crude palm oil production. It is important to note these consumption figures represent the initial filling volume, not ongoing annual demand, as the fluid is designed for closed-loop reuse. Subsequent usage would depend on the fluid’s lifespan, replacement frequency, and operational conditions.

Overall, Phillip Capital Research maintains that Sawit EcoTherm should be viewed as a downstream value-creation innovation rather than a driver of significant volume growth in the palm oil commodity market. Consequently, the firm does not expect this development to alter near-term CPO demand forecasts or impact plantation earnings projections.