The economic contribution of data centres extends well beyond direct job creation, with the sector playing a key role in developing the ecosystem needed to support Malaysia’s artificial intelligence (AI) ambitions, said MIDA chairman Tengku Datuk Seri Zafrul Abdul Aziz.
He said criticism that data centres create relatively few jobs compared with manufacturing investments fails to account for the wider economic spillover effects generated by the industry.
“The spillover is more indirect. It comes from building and bringing in the right ecosystem, especially when we talk about AI,” he said.
Tengku Zafrul said the value of data centre investments should not be measured solely by employment figures, drawing parallels with major infrastructure projects.
“It is like building a highway. When we built the PLUS Highway, we cannot assess its value based only on the number of toll operators collecting tolls,” he said.
He said MIDA is focused on ensuring AI-related investments generate meaningful benefits for the broader economy, while maintaining strict requirements on energy efficiency.
According to him, data centre operators must not only adopt green and sustainable energy sources but also help develop Malaysia’s wider AI ecosystem and supply chain.
“The entire supply chain behind AI infrastructure must grow alongside them. They need to encourage that,” he said.
To boost domestic participation, Tengku Zafrul said the government requires up to 40% local content in data centre projects and continues to encourage greater involvement from local companies and suppliers.
