The Sabah Industrial Development Minister recently stated that Sabah is not yet suitable for developing data centres, citing inadequate water and electricity supply. While this may seem reasonable on the surface, it actually reflects a passive mindset: treating resource limitations as prerequisites instead of challenges to be addressed.
It is true that data centres require stable electricity and cooling systems. However, in today’s digital economy, they are no longer industries reliant solely on natural resources. Tech companies have strong financial capacity and often take the initiative in developing energy and infrastructure. They introduce renewable energy, deploy air-cooling technologies, and collaborate with governments to establish dedicated power grids or water systems.
Clinging to the mindset of "waiting for ideal conditions before attracting investment" will only result in Sabah missing the critical window to integrate with the global digital industry.
Lack of Resources is No Excuse. Global Precedents Exist
Arizona in the United States is a desert state with a hot climate and limited water resources. Yet it successfully attracted a US$600 million Google data centre. This centre uses an air-cooling system to reduce water consumption and has signed long-term agreements to source over 430 megawatts of solar and wind power. Resource limitations did not hinder development because companies had both the capability and the willingness to be part of infrastructure solutions.
Guizhou in China is another example. Once a remote and underdeveloped agricultural province with poor transport and communication infrastructure, it was transformed in just a decade. Huawei converted farmland into cloud campuses. Tencent built a mega data centre inside a mountain. Both Alibaba and Apple followed suit. Guizhou’s success was not based on its original conditions, but on clear policy direction, infrastructure investment, and coordinated industrial strategy.
These examples show that the success of modern data centre development does not depend on having perfect conditions. What matters is whether the government has the resolve to lead companies in creating those conditions together.
Sabah Has Potential. It Should Take the Initiative
Sabah already possesses several potential advantages. The climate is mild. Mountain airflows help with cooling. Rainfall is consistent. There is rich potential in mini-hydro and solar energy. Its location is also strategic. It is near Sarawak, Brunei, Indonesia’s new capital, and the southern Philippines. Sabah is well positioned to become a key node in regional and international data routes. With ongoing upgrades in telecommunications and cable infrastructure, these advantages are becoming more valuable.
Datuk Yong Teck Lee once said, “Southeast Asia is Sabah and its neighbours.” This was not just a geographical point. It reflected a sense of agency and a broader regional vision. Sabah has now established the Energy Commission of Sabah (ECoS), giving it the power to independently plan energy and infrastructure development. This is a rare institutional opportunity. Instead of waiting for perfect conditions, Sabah should move forward guided by a clear industrial strategy.
As the next wave of the digital economy approaches, hesitation will only lead to another missed historical opportunity for Sabah.