By Isabel Siew
The rapid expansion of data centres, semiconductor manufacturing and other water-intensive industries is reshaping the water and wastewater landscape across Asia. As industrial demand grows alongside existing domestic needs, Dr Moh Sherafatmand, chief executive officer and founder of Hydroleap, believes greater emphasis must be placed on reducing water consumption, increasing recycling and improving treatment efficiency.
Sherafatmand said the region’s water priorities have evolved significantly over the past decade. While domestic water security has traditionally driven much of the focus, industrial demand is becoming an increasingly important factor. “Industrial water needs are going to be more than double, nearly triple, of what they are today in the next 10 years,” he said, pointing to growth in data centres, semiconductors and pharmaceuticals.
These sectors are drawing on the same water resources as communities, creating a need to reduce water consumption per unit of production while increasing the reuse of wastewater. For data centres, for example, this could mean reducing water consumption per megawatt of computing capacity or looking at alternative sources of water (recycled wastewater).
Moving beyond conventional treatment
Sherafatmand does not see conventional water treatment as ineffective, but argues that the sector needs to consider the cost, speed and environmental impact of established approaches. “Pretty much any wastewater you can treat by conventional methods, but at what cost, at what speed and at what environmental impacts?” he said.
As industrial facilities become larger, inefficiencies that were once relatively manageable can have a much greater impact. Data centres that once operated at capacities of 5–10MW are increasingly being developed at hundreds of megawatts or even gigawatt scale.
This means operators can no longer afford to overlook incremental improvements in water and energy efficiency. The challenge is particularly relevant because water and energy are closely interconnected.
Hydroleap has focused on two approaches: improving the efficiency of existing water systems and increasing wastewater recycling. In cooling towers, for example, the company works to increase cycles of concentration, reducing the volume of water that needs to be discharged.
According to Sherafatmand, some Hydroleap customers have reduced cooling-tower water discharge by 70–80% by treating and returning the water to the system while getting 1-3% energy savings on chillers due to better heat transfer.
Tackling data centre water demand
Data centres have become a major part of Hydroleap’s business. The company began its first data centre project in 2019, before the recent acceleration in AI-driven infrastructure.
Hydroleap developed a proprietary electro-oxidation technology designed as a plug-in solution for improving cooling-water efficiency. Today, Sherafatmand said, data centres account for nearly 70% of the company’s market.
Hydroleap is also working on wastewater recycling for data centres, treating discharge streams to a quality suitable for reuse in cooling systems. This can reduce reliance on potable or reclaimed municipal water supplies.
The approach is being applied across markets including Singapore, Malaysia, Indonesia and Australia, with the company also involved in projects in the US.
The same principles extend beyond digital infrastructure. Hydroleap has expanded into pharmaceuticals and other advanced manufacturing sectors, helping facilities improve cooling efficiency and recycle wastewater.
From technology provider to project partner
The company’s growth has accompanied increasing demand for industrial water solutions. Sherafatmand said Hydroleap has grown by an average of two to three times year on year over the past four years, driven particularly by data centres and other industrial applications.
The company has completed a double-digit number of projects for one global hyperscaler in the region, with one customer subsequently receiving Singapore’s Watermark and Water Efficiency Awards in 2024.
Hydroleap has also evolved from providing individual technology components to taking on more comprehensive project responsibilities. According to Sherafatmand, major manufacturers and brands are increasingly awarding the company end-to-end projects, reflecting growing confidence in its ability to execute complete treatment solutions.
Scaling sustainable water solutions
Looking ahead, Hydroleap’s focus remains on making wastewater treatment “accessible, affordable and environmentally friendly”.
Sherafatmand said the company’s sustainability objectives are closely linked to commercial outcomes: reducing water and energy consumption can also lower operating costs for customers.
Hydroleap has begun a new fundraising round to deepen its capabilities in its existing markets and explore new markets using the same technology applications.
However, Sherafatmand believes collaboration will be essential as industrial water challenges grow more complex. Greater cooperation between customers, technology providers and other solution providers will be needed to develop integrated solutions that can meet the scale of demand.
“The industry is so big and the new demands have become so massive that it requires a lot of players to collaborate,” he said.
For Sherafatmand, the next phase of industrial water management will therefore depend not only on new technologies, but also on how effectively the sector can combine efficiency, recycling and collaboration to support continued economic growth without placing unsustainable pressure on water resources.
All images courtesy of Hydroleap.
