ByteDance, the company behind TikTok, finances forest conservation efforts in Malaysia, which hosts its largest data centre outside of China.
ByteDance Investing in Forest Conservation and AI Hub in Malaysia
ByteDance, the parent company of TikTok, is making significant strides in Malaysia. The organization is investing a total of RM 11 billion (US$2.53 billion) to develop the country into a regional hub for artificial intelligence (AI), with ByteDance's biggest data center outside China based in Malaysia.
In addition to this, ByteDance is also investing in forest conservation. The company has signed a conservation agreement with the Malaysia Forest Fund and Bina Darulaman to protect and conserve the 92-hectare Darulaman Sanctuary, a forested plot of land located in Langkawi, Malaysia. Under the agreement, both ByteDance and Bina Darulaman will contribute towards forest conservation initiatives at the Darulaman Sanctuary, valued at RM700,000 (US$157,619) over a one-year period.
The Darulaman Sanctuary is home to 73 avian species, 169 butterfly varieties, 160 herbal species, and 80 timber types. Several of these species are listed as endangered, near-threatened, or vulnerable on the International Union for Conservation of Nature (IUCN) Red List.
The Malaysia Forest Fund is developing a forest carbon offset protocol to be launched next year, allowing businesses to invest in forest-based carbon offsets to meet their climate commitments. This is part of the Malaysian government's efforts to explore innovative financing mechanisms such as green bonds, sukuk, carbon tax, and sustainable investments.
The government, led by the Natural Resources and Environment Ministry (NRES), is also advocating for the protection of forests. Minister Nik Nazmi Nik Ahmad believes forests should be regarded as an invaluable asset, supporting biodiversity, regulating climate, providing livelihoods, and strengthening the economy. By viewing forests as an invaluable asset, the government aims to shift towards a model of sustainable leadership that recognizes the intrinsic value of conservation and sustainable management practices.
However, international carbon standards such as Verra require significant forest area sizes and long-term security of land tenure, which could make forest carbon projects too expensive for local project developers or exclude smaller forested areas. The Malaysian government is aware of this challenge and is committed to finding solutions to facilitate the participation of local communities and businesses in forest conservation efforts.
ByteDance, in its commitment to achieve carbon neutrality by 2030, plans to reduce 90% of its emissions through decarbonizing its operations. The remaining 10% of emissions will be offset via partnerships with organizations such as the Malaysia Forest Fund.
ByteDance is the anchor tenant of the MY06 hyperscale data center in Johor, Peninsula Malaysia. The company also plans to expand the MY06 data center with an additional investment of RM1.5 billion (US$337.5 million). This expansion will further strengthen Malaysia's position as a regional AI hub.
In conclusion, ByteDance's investments in both AI and forest conservation demonstrate a commitment to sustainable development in Malaysia. The company's efforts in forest conservation, in particular, align with the Malaysian government's goals of protecting forests and exploring innovative financing mechanisms for forest conservation projects.
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