Kuala lumpur: The misconception that data centres only generate jobs is misplaced as they bring about wider economic benefits beyond direct employment through the ecosystems they help create, said Tengku Datuk Seri Zafrul Abdul Aziz. The Malaysian Investment Development Authority (MIDA) chairman highlighted that criticisms regarding the limited direct job creation by data centres compared to manufacturing investments fail to consider the broader economic spillovers these centres generate for the nation.
According to BERNAMA News Agency, Tengku Zafrul explained that the spillover effects of data centres are mostly indirect and stem from establishing the right ecosystem, particularly in the realm of artificial intelligence (AI). He likened this to the construction of the PLUS Highway, where value cannot be solely measured by the number of toll operators. During a panel discussion at the Energy Transition Conference 2026 (ETCon26), he underscored MIDA's commitment to ensuring that AI-related investments positively impact the broader economy through significant spillover effects.
Tengku Zafrul stated that MIDA is taking a selective approach to data centre investments, prioritizing energy efficiency and implementing specific methodologies and conditions. He called upon data centre operators to adopt green and sustainable energy sources and to contribute to building the AI infrastructure ecosystem in Malaysia. He stressed the importance of the entire supply chain supporting AI infrastructure accompanying these investments, alongside encouraging local participation.
Further, he mentioned that the Malaysian government is promoting greater involvement of domestic companies and suppliers in data centre projects, mandating up to 40 percent local content in these ventures. Additionally, Tengku Zafrul touched upon Malaysia's energy strategy, advocating for nuclear energy as a consideration to achieve the country's net-zero aspirations and secure sufficient energy supply for future growth. He pointed out that neighboring countries like Singapore, Vietnam, Thailand, and Indonesia are also exploring nuclear energy as a means to meet their net-zero targets, expressing his view that prompt action is essential.