MITI: Data centre investments drive broad economic benefits
29 Jul 2024
The economic spillover effect from data centre investment on the national economy is both direct and indirect, according to the Ministry of Investment, Trade and Industry (Miti).
The ministry stated that the direct impact involves the creation of highly skilled job opportunities.
Since 2021, data centre investments have generated 3,693 jobs requiring specific expertise, including engineers, data scientists, big data analysts, cyber security engineers, and information technology engineers.
“This situation helps improve local expertise, provide high-value job opportunities to Malaysians, and encourage technology transfer across various digital technology fields,” said Miti in a written response to the Dewan Negara on Monday.
It said the direct impact also includes the digital transformation of local companies.
Miti noted that these companies will gain access to better digital infrastructure, enabling them to support digitisation and the digital economy, such as the internet of things (IOT) and big data analytics.
This, in turn, allows them to implement digital solutions and automation to improve operational efficiency, reduce business costs and increase competitiveness.
“Moreover, investment in data centres empowers the development of artificial intelligence (AI) human capital skills in Malaysia, through training programmes and industry collaboration with local universities and technical institutes,” said Miti.
Regarding the indirect economic spillover effects, high-value investments in data centres drive growth in technology-related industries in the country.
“This trend attracts new investments in sectors such as server production, microchips, cooling systems, power supplies and other hardware components.
“Investment in data centres also contributes to diversifying the economy, increasing economic resilience, and reducing dependence on traditional industries, such as manufacturing and agriculture,” the ministry added.
Source: Bernama
