Data Centre 2.0 Transition Key Towards A Sustainable Digital Sector - MIDA

KUALA LUMPUR, June 25 (Bernama) -- Malaysia’s shift towards Data Centre 2.0 is a crucial step in building a strong foundation for the country’s digital sector growth, said Malaysian Investment Development Authority (MIDA) chief executive officer (CEO) Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid.

He said data centres are going through a generational shift, transitioning towards generative artificial intelligence (AI), quantum breakthroughs and large-scale automation.

"Recent global shifts -- such as the United States (US) Department of Commerce’s recalibration on AI division rules -- signal a deeper understanding that digital leadership cannot be siloed or reactive. It must be strategic, collaborative and bold. 

"For Malaysia, this is a call to action. We must continue to lead with agility, vision and policy for data centre development," he said in his keynote address at the Bursa Malaysia-Hong Leong Investment Bank Bhd (HLIB) Stratum Focus Series titled 'Data Centre 2.0: The Ecosystem and What’s Next for Malaysia?', here today. 

Sikh Shamsul also said Malaysia's digital ecosystem recorded RM89.8 billion in total approved investments in the first quarter of this year, a 3.7 per cent increase year-on-year, with RM35.1 billion channelled into the information and communication sub-sector.

"From 2021 to March this year, the Digital Investment Office (DIO), a joint initiative by MIDA and Malaysia Digital Economy Corporation (MDEC), has facilitated RM310.7 billion in digital investments. 

"We have surpassed our national target of RM130 billion, well ahead of schedule, and generated more than 92,000 new jobs, many in frontier domains like cloud engineering, AI operations and cybersecurity," he said.

Meanwhile, HLIB group managing director and CEO Lee Jim Leng said the global AI revolution is transforming every industry, and data centres are the very backbone of this new era. 

However, she noted that the transformation is unfolding against a backdrop of geopolitical tension, especially with the recently imposed restrictions by the US on advanced AI chip exports, which have sent shockwaves through the global technology supply chain.

"While Malaysia is not a direct target of these chip restrictions, we are a key node in a deeply interconnected global economy. But, against this global challenge lies Malaysia’s defining moment and opportunities.

"The transition to Data Centre 2.0 is both a test and a tremendous opportunity. By leveraging our strategic advantages, fostering innovation, and strengthening our partnerships, we will be able to navigate global uncertainties and firmly establish Malaysia as ASEAN’s leading data centre hub," she said.

-- BERNAMA