Malaysia boosts AI ambitions with giant data center

This is the data center of YTL Corporation, one of the clearest evidences of Malaysia's spectacular transformation in the computing race of the century.

According to IDC's forecast, by the end of 2025, global computing demand will increase 10 times compared to 2023, with more than 40% coming from the Asia- Pacific region. And Malaysia is quickly becoming an ideal destination for this wave of investment, especially from Chinese technology corporations.

Malaysia Awakens AI Ambition with Worry-Free Data Center Image 1

Image inside a data center. Illustration photo.

“We know that when the AI revolution comes, data centers will really explode,” said Yeoh Keong Hann, a senior executive at YTL, at its headquarters in Kuala Lumpur. “Malaysia is fortunate to have the energy, water, land and talent to fuel this new growth sector.”

Malaysia’s appeal lies in four key factors: stable relations with Beijing, cheap electricity that is 70% of Singapore’s, access to high-end chips banned by the US in China, and a strategic location to serve the booming Southeast Asian market. This explains why Chinese tech giants such as Alibaba Cloud and ByteDance (owner of TikTok) have poured billions of dollars into the country.

“Tens of thousands of Chinese companies are using data centers in Malaysia, especially for AI, e-commerce and short video platforms,” revealed Joe Gao, board member of IBuffett Investment Management.

Typical examples include the presence of e-commerce platforms Temu, Lazada and TikTok Shop, which are fully leveraging local infrastructure to serve a Southeast Asian market expected to double in size by 2030.

However, this investment rush is not without risks. The most prominent is the risk of Malaysia being caught in the US-China technology war. For its part, Malaysia is also facing environmental challenges.

Johor has already begun rejecting some data center projects over concerns about resource depletion. “Data storage will become a serious problem if renewable energy is not used,” warned Farlina Said of the Malaysian Institute of Strategic Studies, as the country aims to cut emissions by 45% by 2030.

Cao Phong (according to SCMP, CNA)

Source: https://www.congluan.vn/malaysia-thuc-day-tham-vong-ai-voi-trung-tam-du-lieu-khong-lo-post341246.html