Categories: Business NewsGovernment PoliciesSustainability

Liew Chin Tong Outlines Sustainable Future for Data Centre Industry with Focus on Jobs, Renewable Energy

Deputy MITI Minister Liew Chin Tong, in the recent National Investment Council meeting, highlighted Malaysia’s commitment to regulating the data centre industry for greater sustainability and economic impact.

He shared that MITI and agencies like SIRIM and MIDA will develop guidelines focused on Power Usage Effectiveness (PUE), Water Usage Effectiveness (WUE), and Carbon Usage Effectiveness (CUE). This initiative is “just at the beginning,” he said, adding that “we are all learning how to manage and deal with data centres and how to grow the industry sustainably” in a process he described as “building the ship as we sail it.”

Significance of data centres

Liew underscored the significance of data centres, especially with the surge in generative AI, noting that “the demand for data centres increased exponentially to accommodate its intense computational demands.” He highlighted the potential impact of energy consumption, mentioning, “A Chat-GPT search consumes about 10 times more energy than a conventional Google search,” underscoring the need for renewable energy to meet Malaysia’s net-zero goals by 2050.

On job creation, Liew urged industry players to create “high-value jobs” throughout the data centre supply chain. He recounted a conversation with Johor Menteri Besar Dato’ Onn Hafiz Ghazi, who noted the stark pay disparity between Singapore and Malaysia: “How much do you pay your workers in Singapore? SGD 4,000. How much do you pay in Malaysia? RM 4,000.” To retain talent, Liew advised, “Malaysia should be understood as a Singapore at a discount,” stressing that offering two-thirds of Singapore’s pay could attract skilled workers back to Malaysia.

Water resources

Liew also addressed the need for alternative water sources for data centres, stating, “The industry will have to invest into creating alternative water sources instead of competing with the people for water.” He suggested investments in cleaning rivers in Southern Johor as one potential solution.

In addition, he emphasized localization, urging MITI and MIDA to explore domestic manufacturing of data centre equipment. “Malaysia has very strong metal fabrication and equipment industries,” Liew remarked, suggesting that the country could serve not only local needs but potentially export to other markets.

Finally, Liew warned against speculative building, given the AI-driven data demand, and advocated for industry players to form an association, which would help build a “collective voice and a common policy platform.” He called for a united effort between government, industry, and stakeholders to ensure the sustainable growth of Malaysia’s data centre sector, saying, “I hope we can work together, so that this industry can flourish, and at the same time, Malaysians benefit from your industry.”