Daily Express Subscriber
Sign in to your account.

KOTA KINABALU: Sabah is not in a position to support data centre investments for now due to constraints in water and electricity supply, said Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.

During the State Assembly sitting, Phoong said projects with high resource demands, like data centres, are being approached cautiously.

“We cannot support it at this time,” he said, noting even Johor had paused similar plans due to limited benefits and low job creation.

In response, Assemblymen Datuk Seri Mohd Shafie Apdal and Datuk Darrel Leiking urged the state to think strategically, citing Sabah’s water resources and geographic potential.

Shafie questioned the readiness of key industrial zones like KKIP, SOGIP, and POIC, asking for clarity on power supply and the progress of desalination projects. Phoong promised detailed figures later and assured that the ministry is doing its best to support current industrial needs.