Malaysia is advancing a novel approach to data center cooling with the development of a palm oil-based immersion cooling fluid, a move that could significantly alter the environmental footprint of the country's growing digital infrastructure sector.
The Malaysian Palm Oil Board (MPOB), a government agency tasked with supporting the nation's palm oil industry, is in the final stages of developing the fluid, branded as Sawit EcoTherm. The initiative aims to provide a sustainable alternative to traditional cooling methods, which are typically water-intensive and energy-demanding.
According to MPOB, the adoption of Sawit EcoTherm in immersion cooling systems could substantially reduce both water and energy consumption at data centers across Malaysia. Dr. Noor Khairin Mohd, senior research officer of the process engineering and design unit within MPOB's advanced oleochemical technology division, told Malaysian news agency Bernama: “If widely adopted, immersion cooling technology using Sawit EcoTherm has the potential to significantly reduce water demand in the data center industry.”
Palm oil, the world's most widely used vegetable oil, is derived from the pulp of the African oil palm and is a staple in food manufacturing, beauty products, and biofuel production. Malaysia is the second-largest producer of the oil globally, trailing only neighboring Indonesia. While palm oil can be cultivated sustainably, its production has long been associated with deforestation, as plantations often replace diverse habitats. Environmental campaigners have linked the industry to harm inflicted on endangered species, including orangutans and Sumatran elephants.
Malaysia's data center market is primarily concentrated around the capital, Kuala Lumpur, and the southern city of Johor, which benefits from its proximity to Singapore's financial hub. However, immersion cooling remains a niche technology in the region, with most AI-focused data center operators favoring direct-to-chip liquid cooling solutions. Nevertheless, a 65MW immersion-cooled data center is currently being planned in Cyberjaya, funded by state-backed developer Selangor Industrial Corporation, signaling early interest in the technology.
MPOB hopes to collaborate with data center operators to validate the efficacy of Sawit EcoTherm in real-world deployments. The fluid would enter a market where alternatives already exist; Cargill, for instance, markets an immersion cooling fluid composed of 90 percent vegetable oil, while other commercial options are based on fluorocarbons or mineral oils.
The development underscores a broader industry trend toward sustainable cooling solutions as data center operators grapple with rising energy costs and environmental scrutiny. If successful, palm oil-based coolants could offer a renewable, locally sourced option for Southeast Asia's rapidly expanding data center market, though the environmental trade-offs of palm oil production remain a critical consideration for stakeholders.
Malaysia Develops Palm Oil-Based Immersion Cooling Fluid for Data Centers
By: IDCNOVARegion: Southeast Asia