KOTA KINABALU:The Sabah Government remains open to credible investments and strategic partnerships that advance the state’s development priorities, but every proposal must undergo proper scrutiny to ensure it delivers sustainable benefits to the people, Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said.
He said investment opportunities — particularly in emerging sectors such as artificial intelligence (AI) and digital infrastructure — must be underpinned by thorough assessment, responsible planning and full compliance with government policy.
“Openness, however, must always go together with due diligence and responsible decision-making,” he said in his speech at the signing ceremony of Memoranda of Understanding (MoUs) for the proposed establishment of Sabah’s first Artificial Intelligence Data Centre (AIDC) at the Sheraton Hotel here last night.
His speech was delivered by Deputy Chief Minister II and Finance Minister Datuk Seri Panglima Masidi Manjun.
Congratulating North AIDC Sdn Bhd on formalising cooperation with several international partners, Hajiji described the signing as an encouraging first step towards exploring opportunities in Sabah’s growing digital economy — while making clear that the project’s success would ultimately be judged by its implementation and the tangible benefits it delivers.
“The real measure of progress, however, will be what follows the signing: careful planning, proper assessment and meaningful results for Sabah,” he said.
Hajiji emphasised that investment proposals of this nature must undergo stringent evaluation by the relevant government agencies, including assessments of technical and financial viability.
All regulatory requirements must be satisfied, he said, and the proposals must remain consistent with state policies, development priorities and the wider public interest.
“An MoU is a statement of intention; it is not, by itself, a government approval. No proposal, however promising, can be exempted from proper scrutiny,” he stressed.
For the proposed AIDC specifically, Hajiji said close attention must be paid to electricity demand and supply, water availability, cooling technology, environmental safeguards, land use and telecommunications connectivity.
Project proponents, he added, must work closely with the relevant authorities and utility providers to ensure the development does not compromise essential services for Sabahans.
“We welcome new opportunities, but not at the expense of reliable essential services for Sabahans,” he said.
Beyond infrastructure requirements, Hajiji said the government would also weigh the project’s potential economic benefits and the scope it offers for local participation.
The construction phase, he noted, could open opportunities for Sabah-based companies in engineering, civil works, telecommunications, logistics and other supporting services.
He cautioned, however, that modern data centres typically require relatively small — though highly skilled — workforces once operational. Emphasis must therefore fall on local procurement, specialist training, technology transfer and opportunities for Sabah-based businesses to build their capabilities.
Hajiji urged project proponents to build local participation into their development plans from the outset: engaging Sabahan contractors, forging partnerships with universities and technical institutions, and creating apprenticeship opportunities for young people.
“We should judge the value of any proposal by the benefits it can demonstrate and sustain, not by the scale of an announcement,” he said.
The Chief Minister said advances in AI and cloud computing are reshaping business operations, public service delivery and employment — creating fresh openings for Sabah to participate meaningfully in the digital economy.
Sabah’s young people, businesses and educational institutions, he stressed, must be given the chance to benefit from these developments rather than remain passive observers.
Even so, he said the state’s digital ambitions must be weighed against existing infrastructure challenges, particularly the need for reliable electricity, clean water and improved connectivity in several parts of Sabah.
“These are important priorities in their own right. They are also the foundations upon which a competitive digital economy must be built,” he said.
Data centres, he noted, depend heavily on stable electricity supply, dependable connectivity and efficient cooling and water management systems — requirements that must be carefully balanced against the needs of households, public services and existing industries.
“A modern digital economy should strengthen Sabah’s infrastructure, not place unnecessary pressure upon it,” he said.
Hajiji highlighted the value of learning from developments in other states, including Johor, where growing data centre investment has generated economic opportunity while raising concerns over utility capacity, environmental management and the impact on surrounding communities.
Sabah, he said, is well-positioned to anticipate such challenges and adopt a development approach suited to its own circumstances.
Expressing hope that the proposed project would progress successfully through the necessary assessments, Hajiji wished North AIDC Managing Director Datuk Chua Soon Ping, his team and the participating partners every success.
“May tonight’s signing lead to practical cooperation and lasting benefits for Sabah and its people,” he said.
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