Developers behind Sabah’s proposed first artificial intelligence data centre must work closely with local authorities and utility providers to ensure its water and electricity needs do not affect existing supplies.
Chief Minister Hajiji Noor said the proposed facility would require careful assessment of electricity demand, water availability, cooling technology and environmental safeguards before any approval could be considered.
He said the project must not place additional pressure on essential services already needed by households, businesses and public institutions.
“The project proponents will need to work closely with the responsible authorities and utility providers. We welcome new opportunities, but not at the expense of reliable essential services for Sabahans,” he said.
Hajiji was speaking at the signing of memoranda of understanding (MoUs) involving North AIDC Sdn Bhd and several international partners in Kota Kinabalu on Thursday.
Deputy Chief Minister II and Finance Minister Masidi Manjun delivered his speech at the ceremony.
Hajiji stressed that the signing of the MoUs did not amount to government approval, adding that the proposal remained subject to scrutiny by the relevant agencies.
He said its technical and financial viability must be established and all requirements assessed against the state’s development priorities and public interest.
“A modern digital economy should strengthen Sabah’s infrastructure, not place unnecessary pressure upon it,” he said.
He added that Sabah should learn from other states, including Johor, where the growth of data centres had brought investment opportunities but also raised concerns over utilities, environmental management and surrounding communities.
Hajiji said the state had an opportunity to address these issues early through proper planning and assessments suited to Sabah’s circumstances.
He also said the proposed development could create opportunities for local contractors and businesses in engineering, construction, telecommunications, logistics and other support services.
However, he noted that operational data centres generally employed relatively small, highly skilled workforces, making local procurement, specialist training and technology transfer important considerations.
He urged the developers to include Sabahan companies, universities and technical institutions in their plans, alongside apprenticeship opportunities for young people.
Hajiji said Sabah should explore the growing artificial intelligence and cloud computing industries while ensuring local communities benefited from the investments.
He said reliable electricity, clean water and better connectivity remained important priorities, particularly in areas where households and businesses continued to face infrastructure shortcomings.
“The real measure of progress, however, will be what follows the signing: careful planning, proper assessment and meaningful results for Sabah,” he said.
