Sunday, 19 July, 2026

10:11 PM

, Kuching, Sarawak

Premier: Data centre approvals to hinge on economic value

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Abang Johari exchanges greetings with guests at the event. Photo: RAMIDI SUBARI

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KUCHING: The Sarawak government is taking a more selective approach in approving data centre investments to ensure such developments generate significant value for the state’s economy.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the move comes amid changing economic landscape, which is increasingly driven by advances in artificial intelligence (AI), semiconductors and data technologies that will underpin future economic growth.

He said data will play a crucial role in the future, and Sarawak has become an attractive destination for investors seeking to establish data centres due to the state’s abundant energy resources.

“However, we are very selective because a data centre is like a global warehouse. It primarily serves as a storage facility for data, while the number of jobs it creates is relatively limited.

“That is why we need to be cautious when approving data centre developments,” he said during the 20th Global Reunion of Nanyang University Alumni held here on Saturday. 

Sharing his personal view, the Premier said data centres may no longer be as essential within the next five to 10 years due to the rapid advancement of emerging technologies.

“This is because new technologies in AI and more advanced grid systems will emerge. We already have next-generation semiconductors capable of storing data more efficiently,” he said.

He stressed that Sarawak must focus on producing a workforce equipped with skills that keep pace with these technological advancements.

“The economy has changed, so our education system must evolve accordingly. By doing so, we will be able to play a greater role in the global economy,” he said.

On the reunion, Abang Johari commended the organising committee for successfully bringing together alumni from different countries and generations.

He said the committee’s dedication and commitment had made the reunion a meaningful occasion.

“The overwhelming turnout tonight, from both within Malaysia and abroad, reflects the enduring bonds forged through education and shared experiences.

“Although many decades have passed since your time at Nanyang University, the spirit of unity continues to transcend generations and national borders,” he said.

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