KUALA LUMPUR, Oct 13 (Bernama) -- The rapid growth of artificial intelligence (AI) and data centre investments in Malaysia must be accompanied by stringent environmental safeguards and policies that promote local innovation and deliver tangible benefits to the country.
Johor Menteri Besar Datuk Onn Hafiz Ghazi said the state had established a dedicated council to vet all incoming data centre proposals to ensure investments meet its requirements.
Speaking as a panellist at the “Towards a Futuristic Nation: Leadership, Innovation and Transformation” forum during the International Young Future Leaders Summit (iFuture) 2026 today, he said Johor only welcomed Tier 3 and Tier 4 data centres that prioritise water efficiency and green technologies.
“Johor is very strict. We only welcome Tier 3 and Tier 4 data centres that require minimal water usage and utilise green technology such as solar panels. We have established a dedicated council to vet all investments,” he said at the World Trade Centre (WTC) here.
The forum also featured Selangor Menteri Besar Datuk Seri Amirudin Shari and former health minister Khairy Jamaluddin, and was attended by Higher Education Minister Datuk Seri Dr Zambry Abd Kadir.
The panellists were responding to concerns raised by university students during a question-and-answer session about the environmental impact of data centres.
Echoing Onn Hafiz’s views, Amirudin highlighted Selangor’s implementation of the “Polluter Pays Principle” and its mandatory 30 per cent local supply chain requirement to ensure domestic companies and talent benefit directly from data centre investments.
“The 30 per cent policy is our initiative to ensure that any investment coming into Selangor benefits Malaysian companies. It not only creates opportunities for local businesses but also challenges them to meet international benchmarks and requirements,” he said.
Meanwhile, Khairy cautioned against allowing Malaysia’s growing computing capacity to be exported or squandered on superficial digital trends, urging young scientists and technology leaders to develop meaningful local applications using the infrastructure.
“Computing power is crucial, but I fear that it is either utilised outside Malaysia while we merely host the physical infrastructure, or it is used for trivialities. We cannot stop social media, but we need to build an ecosystem that develops applications serving humanity in productive ways,” he said.
The three-day iFuture 2026, held from Oct 11 to 13, brings together 1,231 university students, comprising 813 Malaysians and 418 international participants from 60 countries.
The summit is organised by the Ministry of Higher Education (MOHE) through the Department of Higher Education (JPT), in strategic collaboration with Yayasan Perkasa Siswa (YPS) and Universiti Malaysia Pahang Al-Sultan Abdullah (UMPSA).
-- BERNAMA