KUALA LUMPUR: The government must conduct a cost-benefit analysis before considering Tasik Kenyir as a data centre and artificial intelligence hub.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the government welcomes proposals to study the lake’s potential given its renewable energy and water supply advantages.
He noted that Terengganu is not currently considered a hot spot for data centres despite these natural resources.
“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 regarding the potential of Tasik Kenyir as a data centre and AI investment hub.
He confirmed that Terengganu has sufficient energy supply through existing hydro power plants in Kenyir and Hulu Terengganu.
The state also plans to develop a floating solar project and a green hydrogen hub to support future energy needs.
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 needs upgrading as current internet speeds remain insufficient for data centre requirements. – Bernama
