Kuala lumpur: The Malaysian Palm Oil Board (MPOB) has developed Sawit EcoTherm, a palm-based immersion cooling fluid that can significantly reduce water consumption and energy use in data centres while supporting more sustainable digital infrastructure. Dr Noor Khairin Mohd, senior research officer at the process engineering and design unit of MPOB Advanced Oleochemical Technology Division, said Sawit EcoTherm transforms data centre cooling from a water-intensive process into a water-free cooling solution, to protect Malaysia's water resources while boosting digital economy growth. According to BERNAMA News Agency, data centres' traditional water-cooling systems are projected to consume a staggering 876 million litres of water daily in Malaysia, which is equivalent to the water needs of nearly four million people. This technology replaces conventional air- and water-based cooling systems. Instead of using cooling towers that consume large amounts of water through evaporation, server components are fully imme rsed in a non-conductive dielectric fluid that continuously removes heat in a closed-loop system. If widely adopted, immersion cooling with Sawit EcoTherm could significantly reduce the water demand of the data centre industry. Noor Khairin stated that Sawit EcoTherm combines locally sourced renewable raw materials with water-free operation, energy efficiency, and high-performance cooling, making it a promising solution for next-generation artificial intelligence (AI) and hyperscale data centres. The palm oil-based, non-conductive immersion cooling fluid is produced from locally sourced Malaysian palm oil. AI servers generate three to five times more heat than conventional servers. Therefore, immersion cooling can handle much higher heat loads than conventional air cooling, enabling higher computing density, improved energy efficiency, and more reliable operation for next-generation AI infrastructure. In terms of sustainability, Sawit EcoTherm also supports data centre operators in achieving their environme ntal, social, and governance (ESG) goals by addressing four key sustainability priorities: water conservation, energy efficiency, carbon emissions reduction, and environmental protection. The technology improves energy efficiency by cooling server components directly, eliminating server fans, and substantially reducing energy consumption by around 30-50 per cent, contributing to improved power usage effectiveness (PUE). It also helps reduce carbon emissions, as lower electricity consumption translates directly into lower indirect (Scope 2) greenhouse gas emissions. Sawit EcoTherm is produced from up to 95 per cent renewable, bio-based palm-derived materials, reducing reliance on petroleum-based cooling fluids, which improves overall environmental performance. It is PFAS-free (free from 'forever chemicals'), readily biodegradable, and has low ecological toxicity, reducing environmental risks associated with accidental leaks or disposal compared with conventional synthetic cooling fluids. According to her, go vernment support will be instrumental in accelerating the adoption of this technology as it requires the right ecosystem leveraging Malaysia's rapid data centre industry's growth. She noted that it will require strong collaboration between MPOB, technology providers, data centre developers, server manufacturers, and immersion cooling system integrators. The priority is to build confidence among data centre operators through pilot projects, technical validation, and demonstrations of the technology's performance, reliability, and long-term cost benefits. By combining government support, industrial partnerships, and Malaysia's strong oleochemical capabilities, Sawit EcoTherm has the potential to position Malaysia as a global leader in sustainable immersion cooling technology for next-generation AI data centres.