Sarawak Prioritises Quality in Data Centre Investments

KUCHING, Oct 19 – Sarawak is taking a selective approach to data centre investments despite interest that could potentially exceed Malaysia’s current planned and approved data centre capacity several times over.

InvestSarawak chief executive officer Timothy Ong Wye Ern said in an exclusive interview with SunBiz the state does not aim to become a data centre hub solely by accumulating capacity. Instead, it wants investments that generate broader economic benefits, including job creation, industrial development, higher household incomes and contributions to gross domestic product (GDP).

Ong estimated that Malaysia has about 3.5 gigawatts of planned or approved data centre capacity, while potential demand in Sarawak alone could be four to five times that figure if all proposals materialise. However, he stressed that the state would not commit energy resources to every project, given competing priorities and alternative uses for electricity.

Data Centre

He said Sarawak offers long-term power purchase agreements and reliable energy supplies, but cautioned against attracting investors based solely on low tariffs or land costs. Instead, the state wants data centres to support a wider industrial ecosystem, including semiconductor manufacturing and digital technology industries.

Sarawak is also encouraging local participation in foreign investments, with discussions on achieving 30 to 40 per cent local content where feasible. The state aims to strengthen local capabilities and ensure domestic companies benefit from higher-value opportunities rather than acting merely as intermediaries.

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