Letters

Data centre boom helps state and nation's economic growth

LETTERS: Johor is seeing a big rise in data centres. Well-known companies from the United States, China, and Singapore are choosing to set up their facilities here. I'm proud to see the State becoming a bigger part of the digital economy.

Thanks to efforts by many people especially Prime Minister Datuk Seri Anwar Ibrahim, who understands our local needs, Johor and Malaysia is becoming a key part of the digital economy

This growth is bringing more business, better infrastructure, and new job opportunities, with benefits that can reach places like Segamat and Jementah too. My constituents are excited with these developments.

Data centres clearly bring benefits to Johor and the country, boosting our economy with big investments, which reached RM31 billion last year, funding new facilities, improving infrastructure.

The Ministry of Investment, Trade and Industry (MITI) has played a key role in bringing these investments to Johor.

Apart from Greater Johor Bahru; smaller towns in the State like Segamat and Jementah also see gains through improved infrastructure, new business opportunities and enhanced social benefits.

But data centres also consume a lot of energy and water, potentially straining our resources, especially since Johor has faced water shortages before. We need to grow in a way that doesn't harm the environment or local communities

Data centres take up a lot of space, and over-allocating land to them could limit growth in other sectors like agriculture or housing, leading to less revenue and fewer potential jobs than if the land had been used for other economic activities.

We need to make sure that these centres generate as many good-paying jobs as possible for the locals, whether directly or otherwise.

I am gratified to learn that the Ministry of Finance (MOF) and MITI are coming up with plans to make sure data centre investments bring long-term benefits.

MOF has suggested the introduction of a 'scorecard' to push companies to create good jobs, support local businesses, and prioritise sustainability. MITI's guidelines for energy and water use are another positive step toward our zero-carbon goal for 2050.

We can look to Singapore's experience with data centres. It has leveraged technology transfer to build a strong, knowledge-based workforce, boosting its digital economy. By setting robust environmental standards, such as energy and water usage guidelines, it has also pushed for greener practices in the industry.

The current data centre boom should be a reminder to keep investing in our people and infrastructure for long-term growth.

We need to equip our youth with skills in cloud computing, cybersecurity, and AI, and upgrade infrastructure like high-speed internet and reliable power supply. This will lay the foundation for lasting success.

NG KOR SIM

State Assemblywoman

Jementah, Johor

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