Government Prioritises Energy And Water Supply For Expanding Data Centre Industry
PETALING JAYA: The government is placing strong emphasis on ensuring sufficient energy and water supply to support the rapid growth of Malaysia’s data centre industry amid rising investments in digital technology and artificial intelligence (AI).
Gobind Singh Deo said the issue has become one of the key priorities in discussions between the federal and state governments as the fast-growing sector requires large-scale utility capacity.
According to the Digital Minister, multiple ministries and agencies are now working together to ensure data centre development is carried out sustainably while complying with governance and long-term national preparedness requirements.
“The discussions involve various parties including the Ministry of Investment, Trade and Industry (MITI), Malaysian Investment Development Authority (MIDA), Malaysia Digital Economy Corporation (MDEC), as well as the Data Centre Task Force co-chaired by Plantation and Commodities Minister Johari Abdul Ghani,” he said.
He was speaking during a press conference after the launch of the KL1 Kuala Lumpur Data Centre by NEXTDC today.
Gobind said the government is currently evaluating national energy requirements, including the use of alternative energy sources, to ensure continued expansion of the data centre industry without disrupting electricity supply stability.
“We are looking at energy sufficiency, including discussions on alternative energy sources to support next-generation data centre development.
“At the same time, we are also examining water supply issues and the country’s readiness to meet future technological demands,” he said.
He explained that the government is also reviewing the country’s computing capacity to address rising demand from the digital sector over the next five years.
According to him, state governments play an important role, particularly in matters involving water supply management and local authority approvals for data centre developments.
“Discussions with state governments are progressing well and we are receiving extensive feedback from industry stakeholders,” he said.
Gobind added that the ministry is currently developing governance frameworks related to data centres and emerging technologies as part of Malaysia’s preparation for changes in the digital landscape over the next five to 10 years.
He stressed that the country must begin preparing early, including ensuring the local workforce possesses the necessary skills to meet future employment opportunities in high-technology industries.
“The government is also focusing on digital talent development through upskilling and reskilling programmes so Malaysians can benefit from new job opportunities created by the industry’s growth,” he said.
Malaysia’s data centre sector has experienced rapid expansion in recent years amid increasing global demand for AI technologies, cloud computing and large-scale digital services.
Industry experts believe Malaysia has strong potential to emerge as a major regional data centre hub in Southeast Asia if infrastructure, energy and water supply issues are managed sustainably and efficiently.
-wilayah.com.my
