However, the proposal has raised concerns that it could lead to an expansion of palm plantations and create an environmental burden
3-MIN READ3-MIN ListenUshar DanielePublished: 8:10pm, 12 Aug 2026Updated: 8:13pm, 12 Aug 2026Malaysia is taking palm oil from the frying pan to server racks, as it banks on its biggest agricultural commodity to crack a code plaguing its data centre boom – keeping servers cool.Researchers at the Malaysian Palm Oil Board (MPOB) are developing a palm-based liquid to cool computer servers without relying on copious volumes of water, as the country grapples with high resource demands to support its rapidly expanding digital infrastructure.
The new approach – termed the Sawit EcoTherm technology by the government agency – is nearing commercialisation.
As of January, data centres were using 28.68 million litres (7.6 million gallons) of water a day, according to the National Water Services Commission.
But the palm oil technology has raised the question of whether a green solution for data centres would create new pressures further down the supply chain. Experts say this hinges on where palm oil sources are derived and if existing plantations can meet demand or result in more land clearance.
Noor Khairin Mohd, a MPOB senior research officer, said the coolant research had been tested in an operational environment, with a licensing agreement being finalised with a local manufacturer.
