KOTA KINABALU: Sabah is open to credible investment and constructive partnerships in artificial intelligence data centres, with strict conditions, says Datuk Seri Hajiji Noor.
The Chief Minister said openness must always go together with due diligence and responsible decision making.
He said the real measure of progress will be what follows the signing of any understanding or agreement - careful planning, proper assessment and meaningful results for Sabah, making it clear that any investment proposal of this nature remains subject to strict appraisal.
“Its technical and financial viability must be established, all applicable requirements must be met, and it must be consistent with the State Government’s policies, development priorities and the wider public interest,” said Hajiji.
He said this at the Memoranda of Understanding (MOU) signing ceremony for the proposed establishment of Sabah’s first Artificial Intelligence Data Centre (AIDC) at the Sheraton Hotel here, Thursday (Nov 12) night.
“An MOU is a statement of intention; it is not, by itself, a government approval. No proposal, however promising, can be exempted from proper scrutiny,” he stressed.
Deputy Chief Minister II/Finance Minister Datuk Seri Panglima Masidi Manjun delivered his speech.
Hajiji said that for a proposed data centre, such scrutiny must include credible assessments of electricity demand and supply, water availability, cooling technology, environmental safeguards, land use and connectivity.
“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.
“We should also consider what the project can mean for our people. Construction may create opportunities for Sabahan firms in engineering, civil works, telecommunications, logistics and support services,” he suggested.
Once operational, modern data centres generally employ comparatively small, highly skilled teams, said Hajiji, explaining this makes local procurement, specialist training, technology transfer and opportunities for Sabah-based companies all the more important.
He encouraged proponents to build local participation into their plans from the outset, including opportunities for Sabahan contractors, partnerships with universities and technical institutions, apprenticeships for young people, and pathways for local firms to develop new capabilities.
“We should judge the value of any proposal by the benefits it can demonstrate and sustain, not by the scale of an announcement,” he said.
Hajiji said artificial intelligence and cloud computing are changing how businesses operate, services are delivered, and people work, which is why Sabah has every reason to explore opportunities in this growing field.
He wants Sabah youths, local businesses and institutions to have a place in the digital economy, rather than merely observe its progress elsewhere and at the same time, making sure that aspirations remain grounded in the realities faced by Sabahans.
He said in parts of Sabah, households and businesses were still looking forward to more reliable electricity, clean water and better connectivity.
“These are important priorities in their own right. They are also the foundations upon which a competitive digital economy must be built,” said Hajiji.
To this end, he said a data centre makes the connection between basic infrastructures and the digital economy especially clear.
Such facilities depend on stable electricity, dependable connectivity and well-managed cooling and water systems, he said, adding that therefore, these requirements must be considered alongside those of our homes, public services and existing industries.
“A modern digital economy should strengthen Sabah’s infrastructure, not place unnecessary pressure upon it,” Hajiji said.
“We should learn from the experience of other states, including Johor, where growing interest in data centres has brought opportunities as well as questions about utilities, environmental management and nearby communities,” he added.
