Tengku Datuk Seri Zafrul Abdul Aziz spoke at the Energy Transition Conference 2026 (ETCon26) today, emphasizing that data centres generate wider indirect economic benefits beyond direct employment [1, 2, 3, 4]. He said data centres foster ecosystem development, particularly in AI infrastructure, creating spillover effects across the economy [1, 2, 3, 4].

Zafrul compared the economic value of data centres to highway infrastructure. "It’s like building a highway. When you build the PLUS Highway, you cannot judge its value by the number of toll operators collecting tolls," he said, underlining the importance of looking beyond direct job counts [1].

Critics who compare data centre investments solely on direct job creation with manufacturing investments overlook these broader benefits and indirect spillovers, according to Zafrul [1, 2, 3, 4]. The Malaysian Investment Development Authority (MIDA) is focused on ensuring AI and data centre investments deliver meaningful spillover effects and contribute positively to the wider economy [1, 2, 3, 4].

Malaysia is applying more selective criteria for data centre projects, prioritizing energy efficiency and sustainability [1, 2, 4]. Data centre operators are urged to use green, sustainable energy sources and actively build the AI infrastructure ecosystem in the country. "The whole supply chain behind AI infrastructure must come with them. They should encourage it," Zafrul said [1].

The government is encouraging up to 40% local content participation in data centre projects to boost domestic involvement and economic impact. "We are encouraging local participation, we are imposing conditions of up to 40% local content," Zafrul stated [2, 1, 3, 4].

On energy policy, Zafrul stressed that nuclear energy should remain part of Malaysia’s energy mix to achieve net-zero targets and ensure future supply. He noted that neighbouring countries including Singapore, Vietnam, Thailand, and Indonesia are also considering nuclear power to meet net-zero goals. "If you look at our neighbours – Singapore, Vietnam, Thailand, Indonesia – they are all also going down the same path, where nuclear is one of the energy sources required if you want to meet the net-zero target," he said [2].