Malaysia plans to use palm oil to cool data centres

The Malaysian Palm Oil Board (MPOB) is developing Sawit EcoTherm, a palm oil-based cooling fluid that could replace water for cooling servers in data centres. The technology has already been tested in an operational environment and is moving closer to commercialisation, with MPOB finalising a licensing agreement with a local manufacturer.

The technology could significantly reduce water consumption by Malaysia’s rapidly expanding data centre industry. According to MPOB, a 100 MW data centre can consume 1.7–4.2 mln litres of water per day, while Sawit EcoTherm could virtually eliminate water use. As of January, Malaysia’s data centres were already consuming around 28.7 mln litres of water per day.

Palm oil-based cooling could also reduce server cooling costs. The coolant is estimated to cost $2.44–6.10/kg, compared with $12.20–19.52/kg for synthetic and petroleum-based alternatives. By eliminating server fans and some mechanical air-conditioning systems, the technology could potentially reduce data centre energy consumption by up to 40% and operating costs by 30–50%.

Commercialisation of the technology could create a new source of demand for palm oil and support prices. This could become increasingly significant as Malaysia’s digital infrastructure expands rapidly: 143 data centre and cloud computing projects worth more than $35 bln were approved between 2021 and mid-2025. However, experts warn that additional demand should not encourage the expansion of oil palm plantations and deforestation.

Tags: Malaysia, palm oil