Zafrul welcomes Tasik Kenyir data centre hub idea but cautions viability hinges on study

• Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz highlighted a significant challenge in the area's telecommunications infrastructure. While there is access to UniFi and fibre optic connections, he said current speeds are "not sufficient" to meet the requirements of data centres, adding upgrades are necessary if such projects are implemented in the area.

KUALA LUMPUR (Aug 19): A thorough cost-benefit analysis is needed to determine if Terengganu's Tasik Kenyir can become a data centre and artificial intelligence hub, as proposed by a lawmaker from the state, according to the Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz. (pictured)

During his winding-up speech on the 13th Malaysia Plan debate, Zafrul welcomed the suggestion from Datuk Ahmad Amzad Mohamed @ Hashim (PAS-Kuala Terengganu) to study the area’s potential, acknowledging that Tasik Kenyir and Terengganu have promising energy and water resources, including existing hydropower plants and future renewable energy projects like floating solar and green hydrogen.

He also noted that upcoming upgrades to water treatment plants in the state would ensure an adequate water supply for these high-tech facilities.

However, the minister highlighted a significant challenge in the area's telecommunications infrastructure. While there is access to UniFi and fibre optic connections, he said current speeds are "not sufficient" to meet the requirements of data centres, adding upgrades are necessary if such projects are implemented in the area.

"Looking at the telecommunication infrastructure, there are four 5G transmitter structures operating around Tasik Kenyir, specifically at Pulau Sah Kecil, Sungai Chomo, Pulau Bayas and Pulau Chamal. According to PLANMalaysia Data Centre Planning guidelines, at least two service providers are needed to ensure the continuity and reliability of connectivity," Zafrul noted.

PLANMalaysia is the short name for the Federal Department of Town and Country Planning, which is under the Ministry of Housing and Local Government. It advises the government at the federal, state and local levels on all matters related to town and country planning, and creates policies and guidelines for land use, development and conservation.

Hence, Zafrul said the state and federal governments should conduct a thorough cost-benefit analysis to determine the suitability and viability of data centre projects in the Tasik Kenyir area.

"At present, Terengganu is still not a "hot spot" for data centres. Therefore, further discussions must be held with all stakeholders to scrutinise and study the suitability of Tasik Kenyir as a data centre and AI hub in terms of energy, water, and telecommunications infrastructure that meets industry standards to attract strategic investment to Terengganu," Zafrul added.

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