Govt To Ensure Data Centre Projects Will Not Affect Power Supply To Existing Industries – Johari

KUALA LUMPUR, Nov 4 (Bernama) -- The government will ensure that the development of data centres will not affect electricity supply to existing industries which form the backbone of Malaysia’s national economy, said Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani.

He said data centres are important infrastructure to support the adoption of future technologies, but their development must not disrupt existing industrial sectors' energy needs.

He said data centre developments must be balanced to ensure electricity supply to existing industries remains protected.

“We will not interfere with the existing industries as they are the backbone of our economy. However, we also need to be involved in data centres as they represent future technology that needs to be adopted in various activities across our industries,” he told reporters after officiating the Amazon Web Services (AWS) Cloud and AI Day programme here today.

Johari said the development of data centres is necessary because the technology will be used across industries, including manufacturing, which is increasingly shifting towards more advanced technologies.

Malaysia therefore has to provide adequate infrastructure to enable companies to adopt and develop new technological solutions, he said.

Johari said the government will ensure data centre infrastructure benefits foreign investors and also creates opportunities for local companies to participate in its supply chain.

He said the government has stipulated a minimum of 30 per cent local content in data centre development, to include the use of local consultants, contractors, engineers and procurement managers.

On infrastructure development financing, Johari said the government encourages foreign investors to bring in capital to develop these facilities.

This approach allows investors to bear the cost of developing data centres, while Malaysia benefits from the facilities provided and the economic opportunities created, he said.

“They (foreign investors) come with investments to develop this infrastructure. They provide the capital, but we reap the benefits,” he said.

He said Malaysia also has the capacity to support data centre development through its energy resources, including natural gas, and the development of renewable energy sources.

Johari said such infrastructure development is important to ensure Malaysia adopts new technologies and enhances productivity across economic sectors.

-- BERNAMA