Yazılar

Malaysia Slows Data Centre Boom, Complicating China’s AI Chip Access

/in /tarafından

Malaysia, once the fastest-growing hub for data centre expansion in Southeast Asia, is now reining in the pace of growth — a move that could restrict China’s access to U.S.-made AI chips crucial for advanced model training.

Key Developments

  • Dominant role: Malaysia accounts for two-thirds of all data centre capacity under construction in Southeast Asia, led by Johor near Singapore.

  • Growth drivers: Lower costs and spillover from Singapore’s capacity constraints made Malaysia attractive to U.S. giants (Microsoft, Amazon, Google) and Chinese firms (Tencent, Huawei, Alibaba).

  • New restrictions: In July, Malaysia required permits for all exports, trans-shipments and transits of U.S.-made high-performance chips like Nvidia’s, tightening regulatory control.

U.S. Pressure and Trade Tensions

  • Washington fears Malaysia could serve as a backdoor for China to access restricted U.S. chips for AI and potential military applications.

  • Malaysia is simultaneously seeking to finalize a trade deal with the U.S., which increases scrutiny of Chinese-linked data projects.

  • The U.S. Commerce Department has warned that overseas-trained AI models could bolster China’s military edge.

China’s Overseas Push

  • Under Xi Jinping’s “AI Belt and Road” strategy, Chinese operators were urged to expand abroad.

  • GDS Holdings built a major campus in Johor but later spun off its international arm into DayOne, distancing from its Chinese parent amid U.S. pressure.

  • Xi’s April visit to Malaysia ended with pledges of deeper ties in data linkages, 5G and AI infrastructure.

Johor’s Role

  • By mid-2025, Johor had 12 operational data centres (369.9 MW) with 28 more planned (898.7 MW), worth $39B in investments.

  • Johor introduced a vetting committee in 2024, rejecting ~30% of applications for unsustainable energy or water practices. Approval rates have since improved as firms adapt.

Risks for China

  • Chinese AI chips still lag behind Nvidia’s in performance. While Malaysia leaves room for in-country use of U.S. chips, scrutiny is rising.

  • Chinese firms are increasingly rebranding or restructuring overseas operations to avoid geopolitical pressure.

  • Analysts warn Southeast Asia may become a less reliable outlet for China’s AI ambitions as U.S. tariffs and regulatory scrutiny intensify.

Malaysia’s Data Centre Boom Faces Setback as Power Tariff Hikes Bite

/in /tarafından

Malaysia’s booming data centre industry is under pressure following the implementation of steeper-than-expected power tariff hikes on Tuesday, prompting operators to urgently reassess their business models and cost structures. The increases pose a threat to the country’s ambitions of becoming a regional digital investment hub, especially as it competes with neighbours like Singapore, Vietnam, and Thailand.

Electricity accounts for the majority of operational costs for data centres, and Malaysia’s historically low power rates have been a major draw for global tech giants such as Microsoft and Google. But the new pricing structure, announced last December and detailed last month, is set to raise electricity costs by 10% to 14% for major consumers—particularly those in the ultra-high voltage category.

Gary Goh, director of Sprint DC Consulting, warned that the cost burden could be substantial: “For a 100-megawatt facility, this could translate to an additional $15 million to $20 million annually, excluding the variable fuel surcharge.” The government plans to adjust that surcharge monthly based on fuel prices and exchange rates. For June, the rate is currently zero, according to Tenaga Nasional Berhad (TNB), the national grid operator.

However, uncertainty over tiered pricing bands and how surcharges will evolve is causing anxiety among investors. Many were not prepared for the scale of the increases, prompting a potential “wait-and-see” approach from some firms, industry sources say.

Malaysia is forecast to see the fastest growth in regional data centre energy demand, with its share expected to triple to 21% by 2027, according to a May report by Bain & Co, Google, and Temasek. Yet these recent developments could prompt investors to reconsider their commitments.

Cheam Tat Inn, managing director of Equinix Malaysia, said the new tariff structure shifts a larger share of grid management and infrastructure costs onto larger data centres. Equinix, which runs two data centres in Malaysia, is already exploring alternative energy providers to cushion the impact.

The government has defended the price hikes as essential to support social spending, but industry groups are warning of unintended consequences. Mahadhir Aziz, head of the Data Centre Association of Malaysia, said the government must reconsider its position, especially as competitors in the region offer alternative locations. “Even if companies have invested in land and buildings here, they can still reconsider their investments,” he said.

Tenaga declined to comment, directing questions to the Energy Commission, which has yet to respond.

Malaysia Obtains Court Order Against Telegram Over Harmful Content

/in /tarafından

Malaysia’s communications regulator announced on Thursday it has secured a temporary court order against messaging platform Telegram and two specific channels for allegedly spreading content that violates Malaysian law.

The Malaysian Communications and Multimedia Commission (MCMC) said it sought the order due to Telegram’s “serious failure to address content that has been repeatedly reported.” The two targeted Telegram channels, named “Edisi Siasat” and “Edisi Khas,” reportedly contained material with the potential to undermine public trust in national institutions and disrupt social harmony.

A Malaysian high court granted an interim injunction to halt the dissemination of the harmful content and prevent its republication. The commission did not specify the exact nature of the content.

Telegram did not immediately respond to requests for comment. The MCMC emphasized that Telegram would be given a fair chance to defend itself in accordance with justice and fundamental rights.

In January, Malaysia enacted a new social media law requiring platforms and messaging services with over 8 million users in the country to obtain licenses or face legal penalties. The law targets rising cybercrime and increasing harmful social media content.

Malaysian authorities classify online gambling, scams, child pornography and grooming, cyberbullying, and content related to race, religion, and royalty as harmful under the law.