Pahang Monitors Data Centre Development Based On Infrastructure Capacity

KUANTAN, Dec 9 (Bernama) -- Plans to develop data centres in Pahang will be closely monitored to ensure they remain within the state’s infrastructure capacity, said state Investment, Industry, Science, Technology and Innovation Committee chairman Datuk Mohamad Nizar Najib.

He said data centres typically consume large amounts of electricity and water.

“If our infrastructure has reached its maximum capacity or if Pengurusan Air Pahang Berhad (PAIP) informs us that water resources are limited, we will not approve any additional data centre construction,” he said during the Pahang State Legislative Assembly sitting at Wisma Sri Pahang here today.

He said this in response to a supplementary question from Datuk Seri Tuan Ibrahim Tuan Man (PN-Cheka) regarding the state government’s plans, following Johor’s move to cancel the proposed Tier 1 and 2 data centre projects that require substantial water supply.

In the meantime, Mohammad Nizar said the state has identified two areas ready to host data centre developments,  Gebeng and Gambang,  both of which have sufficient water and electricity supply as well as adequate fibre-optic connectivity.

He said the state would also continue to monitor developments in the data centre industry, following views from economists suggesting that investments in artificial intelligence (AI) may not be sustainable in the long term and could represent an ‘economic bubble’.

“There has yet to be an AI company that can demonstrate a truly profitable business model. According to a Financial Times report, OpenAI, the pioneer behind ChatGPT, has around 800 million users, but only five per cent of them are paying customers,” he said.

Meanwhile, responding to a question from V. Arumugam (BN-Sabai), state FELDA Affairs, Cooperatives and Entrepreneurs Committee chairman Datuk Amizar Abu Adam said Pahang has 38,577 micro, small and medium enterprises (MSMEs) as of 2024.

He said the focus sectors include services such as wholesale and retail trade, food and beverages, laundry, workshops, travel agencies, and hospitality.

In addition, the construction sector remains a preferred choice among MSMEs, involving small-scale contractor work and the supply of building materials, as well as food and wood-based production in the manufacturing sector.

“Next is the agriculture sector in Cameron Highlands, including cash crops and agro-tourism activities, with 369 agricultural MSMEs recorded,” he added.

Elaborating, Amizar said the state and federal governments have implemented various initiatives for MSMEs, including via the 4P programme, which focuses on labelling, packaging, branding and promotion.

-- BERNAMA