SHAH ALAM, Sept 15 — Data centres present challenges to Selangor but also bring various opportunities, especially in attracting high-value investments, said Menteri Besar Dato’ Seri Amirudin Shari.
He said Selangor has become an attractive location for data centres partly due to its proximity to key infrastructure, while some operators are looking to relocate from Singapore due to higher operating costs.
“Many data centres have moved from Singapore because the cost of energy is higher and land is more expensive,” he said during a town hall held in conjunction with Malaysia Day at Sultan Salahuddin Abdul Aziz Shah Polytechnic here today.
However, Amirudin said the state must balance the economic benefits of data centres with their high electricity and water requirements to ensure the projects don’t affect the people’s needs.
“The state will not allow data centre development if the necessary electricity and water supply is insufficient. We have to prioritise the needs of the people. If there is not enough supply, we cannot allow data centres to come in.”
He said the state is being cautious by imposing strict conditions on data centres’ electricity and water needs before approving such projects.
“The state is exploring alternatives and encouraging more efficient approaches to data centre operations, including the use of technology that can reduce resource consumption.
“We have to look into alternatives and make sure the development is sustainable.”
Amirudin added that the state wants local companies and small and medium enterprises (SMEs) to benefit from the growth of the data centre industry by participating in its supply chain and related economic activities.
On a separate issue, the menteri besar said climate change has made flood management increasingly complex, requiring the state to adopt measures beyond conventional solutions such as deepening rivers, building retention ponds, and excavating drains.
He said hundreds of millions of ringgit are being spent annually on flood-related works, with major projects by the federal government also underway, citing the Sungai Langat flood mitigation plan as an example as it cost RM1 billion in federal funds but has yet to be completed.
He noted that delays could occur due to factors including land acquisition, project design and the need for federal-state coordination.
“Selangor is also carrying out river deepening and dredging, drainage improvements, and other flood mitigation measures, including projects that have reduced flooding in several previously affected locations.
“We are doing it, but the problem is that as long as we do not address the issue of rising sea levels, we have to look at the overall ecosystem to deal with floods effectively,” Amirudin said, adding that Selangor has a dedicated dashboard to monitor the progress of flood mitigation projects.
