Malaysia plans to use palm oil to cool data centers

August 23, 2026 |

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 centers. The technology has already been tested in an operational environment and is moving closer to commercialzation, with MPOB finalizing a licensing agreement with a local manufacturer.

The technology could significantly reduce water consumption by Malaysia’s rapidly expanding data center industry. According to MPOB, a 100 MW data center can consume 1.7–4.2 million liters 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 million liters 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 center energy consumption by up to 40% and operating costs by 30–50%, according to the report.

Commercialization of the technology could create a new source of demand for palm oil and support prices, the report added.

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Category: Food & Agriculture

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