Hajiji: Sabah open to AI data centre investments, subject to strict conditions

KOTA KINABALU: The Sabah government is open to credible investments in the technology sector, including the development of artificial intelligence (AI) data centres, but every investment proposal must undergo rigorous evaluation to ensure that the interests of the people and the state's basic infrastructure requirements are not compromised.

Sabah Chief Minister Datuk Seri Hajiji Noor said the state government's openness to investments and strategic partnerships must be accompanied by due diligence and responsible decision-making, particularly for large-scale projects requiring substantial energy and water resources.

"However, this openness must always be accompanied by due diligence and responsible decision-making processes," he said in a statement issued by the Chief Minister's Department Media and Communications Office.

The statement was issued in conjunction with the signing ceremony of a memorandum of understanding (MoU) for the proposed establishment of Sabah's first Artificial Intelligence Data Centre (AIDC) last night, with Hajiji's speech delivered by Deputy Chief Minister II and Sabah Finance Minister Datuk Seri Masidi Manjun.

Hajiji said the signing of the MoU between North AIDC Sdn Bhd and several global partners was an encouraging initial step, but the project's actual success would depend on careful planning, comprehensive evaluation and the benefits it could bring to Sabah.

"However, the true measure of progress is what happens after this signing, namely careful planning, proper evaluation and meaningful outcomes for Sabah," he said.

He said the signing of an MoU did not mean that a project had obtained state government approval, adding that every proposal must still fulfil all conditions and requirements stipulated by the relevant agencies.

He said the evaluation of proposed data centre developments must take into account technical and financial viability, electricity and water supply requirements, cooling technology, environmental protection, land use and connectivity.

He said developers must also work closely with authorities and utility providers to ensure that the development of such facilities did not undermine the reliability of essential services required by the people.

"Modern digital economies should strengthen Sabah's infrastructure, rather than place unnecessary additional pressure on it," he said.

Meanwhile, Hajiji said data centre development could create opportunities for local companies in engineering, construction, telecommunications, logistics and support services, particularly during the construction phase.

In this regard, he encouraged project developers to provide opportunities for local contractors, collaborate with universities and technical institutions, and introduce apprenticeship programmes to enable Sabah's youth to acquire skills in the digital technology sector.

Hajiji said developments in AI and cloud computing offered Sabah opportunities to strengthen its participation in the digital economy, but these efforts must go hand in hand with addressing basic infrastructure problems still faced by some residents of the state.

He said the experience of other states, including Johor in data centre development, could serve as a guide, particularly in utility management, environmental protection and the interests of communities. — BERNAMA