KUALA LUMPUR: Malaysia is discouraging new data centre development, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said.
He said investors from China interested in the sector should instead partner with existing operators or take them over.
“We have a lot of data centres already. We do not really encourage the opening of new ones.
“However, if they wish, it is better if they work with existing companies, do it together or take over,” Zahid said at a press conference after meeting a 58-member Chinese business delegation.
The group was exploring opportunities in data centres, cloud computing and artificial intelligence under the digital economy and technology infrastructure sector.
The sector was one of six areas the delegation was focusing on. The others were electrical and electronics and semiconductors; specialised industrial materials and precision engineering; food processing and halal products; health technology; and tourism.
Asked what Malaysia wanted from investors from China, Zahid said the government was prioritising high-value investments.
“We are now focusing on high-value investment, meaning high-end. No longer labour-intensive,” he said.
Talking points prepared for the press conference listed data centre development among the opportunities for investors from China. They also stressed that digital infrastructure must be supported by a reliable energy supply and efficient water management.
Last week, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said the government had yet to decide on 24 applications for new data centres, as it was prioritising the delivery of 117 projects already approved.
Industry experts have called for Malaysia to be more selective in approving future data centre projects, as the fast-growing industry places increasing pressure on electricity, water and land resources.