Water security remains a critical factor in supporting economic growth and investment in Selangor, Malaysia, as the state continues to expand its manufacturing and technology sectors. Air Selangor, the country’s largest water services provider, plays a key role in ensuring a reliable and resilient water supply across Selangor as well as the federal territories of Kuala Lumpur and Putrajaya.
Selangor’s economy recorded strong performance in 2025, with a gross domestic product of RM460.1 billion. This upward trajectory has sustained into 2026, with investments totaling RM70 billion by mid-year, predominantly in services and manufacturing. These figures bring the state close to meeting its full-year investment goal of RM80 billion, underscoring the importance of dependable water infrastructure in supporting these industries.
Air Selangor reported several operational improvements in 2025, including a reduction of non-revenue water (NRW) to 26.8%, surpassing the National Water Services Commission’s target of 27.5%. Additionally, the company lowered its pipeline burst rate to 2.94 bursts per 100 kilometers per year, significantly below the global benchmark of 13, demonstrating effective maintenance and infrastructure management.
The company’s efforts to enhance water security have earned it membership in the Leading Utilities of the World (LUOW) network, marking it as Malaysia’s first water provider to receive this recognition. This accolade reflects a commitment to innovation and operational excellence aimed at supporting Selangor’s long-term economic ambitions.
As the state moves toward its goal of generating RM600 billion in revenue by 2030, water demand faces growing pressure, particularly from the expanding data centre industry. With approximately 40 approved data centre projects, each requiring substantial water for cooling, concerns have arisen regarding sustainable supply levels. Air Selangor maintains that the state’s water resources can accommodate industrial growth while protecting domestic water needs, with a significant buffer in place.
A key sustainability initiative involves collaboration between Air Selangor, Amazon Web Services (AWS), Indah Water Konsortium (IWK), and Central Water Reclamation Sdn Bhd (CWR) to develop Klang Valley’s first integrated reclaimed-water supply chain for data centre cooling. In 2025, CWR supplied about 1,203 megaliters of reclaimed water, marking a milestone in reducing reliance on potable water for industrial use. As demand from data centres is projected to exceed 240 million liters per day, reclaimed water is expected to play an increasingly vital role.
To further bolster water security, Air Selangor is investing in infrastructure projects such as the Rasau Water Supply Scheme, which will provide an additional 700 megaliters per day by mid-2027, with potential for expansion to 1,400 megaliters. This project repurposes nine former tin-mining ponds as off-river storage facilities to increase raw water availability. The scheme is projected to raise the water reserve margin from 16.7% to 24.8%, enhancing the system’s resilience against demand spikes and supply disruptions.
Other forthcoming projects, including Langat 2 Phase 2 and Labohan Dagang Phase 2, will contribute additional raw water capacity through inter-state transfers and off-river storage reservoirs, further strengthening supply capabilities.
Air Selangor stresses that these integrated efforts are essential to meet increasing water demand linked to economic growth and to ensure that Selangor remains an attractive investment destination with sustainable and reliable water infrastructure for both domestic and industrial consumers.