MITI says Tasik Kenyir lacks the high-capacity telecoms infrastructure and market demand needed to become a large-scale data centre hub for now
KUALA LUMPUR: The Ministry of Investment, Trade and Industry (MITI) has stated that a proposal to develop Tasik Kenyir as a large-scale data centre hub is not suitable for implementation at this time.
MITI said investors are currently focused on strategic locations with mature digital ecosystems and existing international connectivity.
“Therefore, taking into account the critical factors of insufficient high-capacity telecommunications infrastructure and the absence of current market demand, the proposal to develop Tasik Kenyir as a large-scale data centre hub is not suitable to be implemented for now,” the ministry said in a parliamentary reply.
It noted that developing high-speed dedicated connectivity infrastructure is a key challenge to realising the lake’s potential as an investment hub for data centres and artificial intelligence (AI).
The operation of large-scale data centres and AI hubs targeted by global tech firms requires much higher connection speeds to handle intensive data traffic.
“These requirements differ greatly from small-scale data centres, such as those for small and medium enterprises or educational institutions, which may only need speeds around 1Gbps,” MITI added.
It explained that while there is fixed-line access and 4G coverage at Tasik Kenyir, the existing infrastructure does not meet the required capacity, speed and reliability for global data centre operations.
The government therefore proposes cooperation with the Terengganu state government to conduct a site suitability study and cost-benefit analysis for the location as a future data centre and AI hub. – Bernama
