Hajiji says Sabah welcomes tech investors, but warns big projects must protect water and power supplies

KOTA KINABALU, Nov 13 — The Sabah government is open to investments in the technology sector, including AI data centres, but every proposal must undergo thorough scrutiny to safeguard the welfare of residents and the state’s essential infrastructure. Chief Minister Datuk Seri Hajiji Noor stressed that this openness to investments must be paired with responsible decision-making, especially for significant projects that demand large quantities of energy and water.

Speaking at the signing ceremony of the memorandum of understanding (MoU) for Sabah’s inaugural AI Data Centre, Hajiji emphasized that the project’s ultimate success hinges on meticulous planning, meticulous evaluation, and tangible benefits for the state. The signing, while a promising first step, does not equate to state government approval, and all proposals must still meet stringent conditions set by relevant authorities.

Evaluation of data centre projects must consider factors such as technical feasibility, financial viability, electricity and water supply needs, cooling mechanisms, environmental preservation, land usage, and connectivity. Developers must collaborate closely with authorities and utility providers to ensure that the development of such facilities does not jeopardize essential services for the public.

Hajiji highlighted that modern digital economies can bolster Sabah’s infrastructure without exacerbating pressure on existing resources. He further noted that data centre development could generate opportunities for local firms in engineering, construction, telecommunications, logistics, and support services, encouraging developers to provide avenues for local contractors, partner with universities and technical institutions, and establish apprenticeship programs to equip Sabah’s youth with skills in the digital technology sector.

While AI and cloud computing could enhance Sabah’s engagement in the digital economy, these advancements must be pursued concurrently with addressing the state’s ongoing infrastructure challenges. Drawing inspiration from the experiences of other states, including Johor in data centre development, Hajiji emphasized the importance of utility management, environmental protection, and the well-being of local communities.