Masidi (centre) accompanied by Deputy Chief Minister I cum Works and Utilities Minister Datuk Seri Dr Joachim Gunsalam (left) witnessing the MoU signing ceremony.
KOTA KINABALU: The State Government remains open to credible investment and constructive partnerships that support Sabah’s development priorities, said Chief Minister Datuk Seri Haji Hajiji Haji Noor.
“Openness, however, must always go together with due diligence and responsible decision-making,” he said in his speech at the Memoranda of Understanding (MoUs) signing ceremony for the proposed establishment of Sabah’s first Artificial Intelligence Data Centre (AIDC) at the Sheraton Hotel here tonight. His speech was delivered by Deputy Chief Minister II cum Finance Minister Datuk Seri Masidi Manjun.
Congratulating North AIDC Sdn Bhd on sealing the MoUs with several global partners, Hajiji said bringing together partners from different fields and countries was an encouraging first step.
“The real measure of progress, however, will be what follows the signing: careful planning, proper assessment and meaningful results for Sabah,” he said.
He stressed that any investment proposal of this nature remained subject to strict appraisal by the relevant government agencies.
“Its technical and financial viability must be established, all applicable requirements must be met, and it must be consistent with the State Government’s policies, development priorities and the wider public interest.
“An MoU is a statement of intention; it is not, by itself, a government approval. No proposal, however promising, can be exempted from proper scrutiny,” he said.
Hajiji said scrutiny of a proposed data centre must include credible assessments of electricity demand and supply, water availability, cooling technology, environmental safeguards, land use and connectivity.
“The project proponents will need to work closely with the responsible authorities and utility providers. We welcome new opportunities, but not at the expense of reliable essential services for Sabahans,” he said.
He said the project should also be assessed in terms of the benefits it could bring to the people, including construction opportunities for Sabahan firms in engineering, civil works, telecommunications, logistics and support services.
“Once operational, modern data centres generally employ comparatively small, highly skilled teams. That makes local procurement, specialist training, technology transfer and opportunities for Sabah-based companies all the more important,” he said.
Hajiji encouraged proponents to build local participation into their plans from the outset, including opportunities for Sabahan contractors, partnerships with universities and technical institutions, apprenticeships for young people, and pathways for local firms to develop new capabilities.
“We should judge the value of any proposal by the benefits it can demonstrate and sustain, not by the scale of an announcement,” he said.
He said artificial intelligence and cloud computing were changing how businesses operate, services are delivered and people work.
“Sabah has every reason to explore opportunities in this growing field. We want our young people, local businesses and institutions to have a place in the digital economy, rather than merely observe its progress elsewhere.
“At the same time, our aspirations must remain grounded in the realities faced by our people. In parts of Sabah, households and businesses are still looking forward to more reliable electricity, clean water and better connectivity.
“These are important priorities in their own right. They are also the foundations upon which a competitive digital economy must be built,” he said.
Hajiji said a data centre highlighted the close connection between basic infrastructure and the digital economy, as such facilities depended on stable electricity, dependable connectivity and well-managed cooling and water systems.
These requirements, he said, must be considered alongside the needs of households, public services and existing industries.
“A modern digital economy should strengthen Sabah’s infrastructure, not place unnecessary pressure upon it,” he said.
He said Sabah could learn from the experience of other states, including Johor, where growing interest in data centres had brought opportunities as well as questions about utilities, environmental management and nearby communities.
“Sabah has the advantage of being able to anticipate these considerations early and plan in a way that suits our own circumstances,” he said.
Hajiji wished North AIDC Managing Director Datuk Chua Soon Ping, the North AIDC team and all participating partners well as they work through the necessary assessments and take the next steps.
“May tonight’s signing lead to practical cooperation and lasting benefits for Sabah and its people,” he said.
