KUALA LUMPUR: Several companies have shown interest in taking part in the development of data centres through the Kerian Integrated Green Industrial Park (KIGIP) project.

Prime Minister Datuk Seri Anwar Ibrahim said the companies had expressed interest when the project was announced by the Investment, Trade and Industry Ministry (Miti) previously.

"Based on Miti's plans when announcing the project, there were several companies that expressed interest as several (other) companies involved in data centres are limited now.

"We also do not encourage a new data centre industry unless they specialise in Artificial Intelligence as data centres require high energy and water consumption.

"(Hence,) this is why several companies have been identified (for the development of data centres)," he said during prime minister's question time in the Dewan Rakyat, today (July 2).

Anwar said this in response to Howard Lee Chuan How (PH-Ipoh Timor) who enquired about the government's strategy to attract major investments in the development of KIGIP.

He also said the government's only challenge now was to complete proper infrastructure in the green energy and water industry, as well as to ensure a sufficient pool of talent to meet the current needs of the industry to lure more investors.

Anwar had previously announced the KIGIP project which will boost the growth of the semiconductor industry and attract more global players to set up their business in the country.

First introduced during the 2024 Budget, KIGIP aims to draw green Electrical and Electronics (E&E) investments, while addressing water limitations in Penang.

Through the project, Anwar said the government had also agreed in principle to approve an allocation for a raw water distribution project from Sungai Perak to the Bukit Merah Dam to provide treated water supply to northern Perak and Penang, estimated to cost RM4 billion.

Meanwhile, it was announced that Sime Darby Plantation Bhd (SD Plantation) will work with major shareholder Permodalan Nasional Bhd (PNB) to develop 404 hectares of KIGIP land in Perak.

The plan involves the establishment of 267 hectares of solar farms as the principal green energy source for the area, designed to attract semiconductors and E&E investments, two of the fastest-growing sectors in the global economy.

Separately, the group is also exploring opportunities with partners to develop data centres, which typically consume large amounts of energy.

https://www.nst.com.my/news/nation/2024/07/1071183/firms-keen-data-centres-kigip-dewan-rakyat-told