Kuala terengganu: The Ministry of Investment, Trade and Industry (MITI) has declared that the current proposal to develop Tasik Kenyir as a large-scale data centre hub is not feasible. This announcement was made in response to ongoing discussions about leveraging the area for significant technological investments.

According to BERNAMA News Agency, MITI emphasized that investors are presently concentrating on locations with established digital ecosystems and international connectivity. The ministry highlighted that Tasik Kenyir lacks the necessary high-capacity telecommunications infrastructure and current market demand, making the proposal unviable at this time.

MITI pointed out that one of the crucial challenges is the development of high-speed dedicated connectivity infrastructure, which is essential for Tasik Kenyir to become a viable investment hub for data centres and artificial intelligence (AI). Addressing a query from Datuk Ahmad Amzad Mohamed, MITI explained that the operation of large-scale data centres and AI hubs requires much higher connection speeds to manage intensive data traffic and real-time applications.

The ministry elaborated that while there is some level of fixed-line access and 4G coverage in Tasik Kenyir, the current infrastructure does not meet the capacity, speed, and reliability demands of global data centre operations. As a forward-looking measure, MITI suggested collaborating with the state government to conduct a site suitability study and a cost-benefit analysis to assess Tasik Kenyir’s potential as a future data centre and AI hub.