Kuala Lumpur.
Image: indragunawan/Pixabay
Malaysian Prime Minister Datuk Seri Anwar Ibrahim said data centers have contributed to the increase in energy and water consumption and confirmed during a parliamentary question and answer session that the government has already restricted the entry of new data centers that have nothing to do with AI.
The restrictions are expected to remain in place for almost two years to reduce pressure on the electricity grid and water supply, said Ibrahim, whose comments were published by government news agency Bernama.
The Prime Minister said if data centers have advantages in AI development and technology, approvals will be easier.
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His announcement was made in response to questions from ministers present at the parliamentary session. Some politicians raised concerns about the energy efficiency of data centers and asked what the government is doing to ensure that the growth of data centers in Malaysia would not lead to higher electricity tariffs or disruptions to household supplies.
The Prime Minister responded that measures will be taken to ensure that domestic consumers are protected and the electricity grid is not restricted, adding that the government has longer-term plans to channel electricity supply from Sarawak to Peninsular Malaysia. He also discussed the possibility of relying on the ASEAN Power Grid (APG), a project that aims to achieve regional interconnection among Southeast Asian countries by 2045.
“The ASEAN energy network is serviced from Vietnam to Peninsular Malaysia and Singapore, and there are also plans to source energy from Sarawak to Peninsular Malaysia and Singapore,” he said.
The Malaysian leader also said his government’s approach to AI and data centers would be different from Western countries. He asserted that the national policy will emphasize ethical issues and civil rights.
A bill on AI data centers and policies is in the early stages of drafting at the Ministry of Digital Affairs and still needs to be reviewed by stakeholders and a special parliamentary committee before it can be finalized.
According to the Prime Minister, the bill represents “a new approach and effort for the country, as for most countries. It will also detail issues of responsibility and ethical use, and involve both developers and operators of AI systems.”
Malaysia is a growing data center market in Asia. According to analysis from White & Case LLP, the Johor region has become Southeast Asia’s fastest-growing data center hub, expected to account for 60% of Malaysia’s capacity by 2030.
Furthermore, Singapore’s moratorium on new data center projects between 2019 and 2022 has driven hyperscalers to Malaysia. Singapore has since lifted its moratorium, but remains selective in accepting data centers. Meanwhile, Malaysia offers plenty of land space for developers, coupled with low construction costs and low electricity rates.
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