KUALA LUMPUR, Aug 19 (Bernama) — The government will have to conduct a cost-benefit analysis (CBA) before considering Tasik Kenyir as a data centre and artificial intelligence (AI) hub, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He said the government welcomes the proposal to study Tasik Kenyir’s potential as a hub for data centre and AI investments, given its appeal due to the combination of renewable energy, ample water supply, and supporting infrastructure being the key factor.
However, the federal and Terengganu state governments should do a CBA to determine its feasibility as a hub, he said, noting that Terengganu is not yet considered a hot spot for data centres.
“Therefore, further discussions must be held with all stakeholders to assess the suitability of Tasik Kenyir as a data centre and AI hub in terms of energy infrastructure, water, and telecommunications network that conforms to industry standards in order to attract strategic investments to Terengganu,” he said during the winding-up session of the 13th Malaysia Plan debate in the Dewan Rakyat today.
Tengku Zafrul was responding to a question from Datuk Ahmad Amzad Hashim (PN–Kuala Terengganu) regarding the potential of Tasik Kenyir as a data centre and AI investment hub.
In terms of energy, the minister said Terengganu and Tasik Kenyir in particular have sufficient energy supply given the existing hydro power plants in Kenyir and Hulu Terengganu, as well as the planned development of a floating solar project and a green hydrogen hub in the state.
Regarding water supply, he said the existing water treatment plant is capable of meeting demand, with a planned upgrading in place until 2027 to increase capacity.
Tengku Zafrul said the telecommunications infrastructure, however, needs to be upgraded as the internet speed is still insufficient to meet the need of data centres.
— BERNAMA
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