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Budget wishlist: data centres should enjoy manufacturer status

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With Budget 2018 around the corner, AIMS Group CEO, Chiew Kok Hin, is hoping for lower power tariffs for the data centre industry.

“In a data-rich world where everything is captured, saved and shared, data centres are the digital age manufacturers,” Chiew said. “The growing demand for data storage globally has opened up borders as global companies look towards Asia to store their data for Asian customers. However, high operations cost continues to hinder the growth of Malaysia as a data centre.

“Energy makes up approximately 40% of operating costs for a data centre. Malaysia’s current tariff is much higher than in Singapore. This makes us less attractive as the choice for Asia, causing Malaysia to lose out on significant collaborations with international brands,” he said.

Chiew hopes the government will reclassify the data centre industry as a manufacturer so that it can enjoy lower power tariffs and reduce the cost of operations. “These savings will be passed on to our customers, making Malaysia more attractive and economically viable for global investment.

“For Malaysia to become a world-class data centre hub as per the aspirations of Pemandu’s EPP 3, it is necessary to reclassify the data centre industry. Otherwise, we risk losing our attractiveness in the global market looking to store their data in Asia,” he said.

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