DATA has become an essential resource to drive economic growth and technological innovation.
Malaysia's strategy of combining data centre development with real estate is a bold vision.
This approach is seen not only in Malaysia but is also a trend in Southeast Asia, where countries are investing in digital infrastructure to spur economic progress.
Central to Malaysia's digital strategy is the MyDIGITAL initiative, which aims to transform the country into a significant player in the global digital economy by 2030.
Another key component of Malaysia's digital infrastructure strategy is the National Fiberisation and Connectivity Plan, which targets 98 per cent broadband coverage in populated areas by 2023.
The Jalinan Digital Negara initiative aims to boost digital connectivity by focusing on expanding 4G coverage and preparing for 5G deployment.
The expansion of data centres in tech-centric regions like Cyberjaya and Iskandar Malaysia is a testament to Malaysia's strategic vision.
Cyberjaya, often referred to as Malaysia's Silicon Valley, has seen a 30 per cent increase in data centre investments, according to a report by the Malaysian Investment Development Authority.
This growth reflects Cyberjaya's emerging role as a technology hub.
Malaysia's Smart City Framework, introduced in 2019, aims to integrate digital technologies with urban development through smart city projects in Kuala Lumpur, Johor and Penang.
Regionally, Malaysia's digital strategy aligns with broader Asean trends, as Vietnam, Indonesia, Thailand, the Philippines and Singapore are making substantial investments in digital infrastructure.
Vietnam's Vision 2030 includes significant data centre investments, and Indonesia has made a US$10 billion commitment to modernise its digital infrastructure.
Singapore's extensive data centre network is projected to have a compound annual growth rate of 8.5 per cent through 2026.
This offers insights into how strategic investments can drive digital growth while balancing sustainability concerns.
The inclusion of Cambodia, Laos and Myanmar in the Asean digital framework highlights the commitment to inclusive growth and the importance of regional integration for balancing developmental disparities.
Malaysia's strategy of integrating data centres into real estate development is forward thinking and has significant potential.
But it must balance ambition with pragmatism, ensuring that growth is not only rapid but also inclusive.
The challenges are significant, but so too are the opportunities.
NAUFAL FAUZI
Kuala Lumpur
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times