Malaysia set to become Southeast Asia's AI powerhouse with NVIDIA-YTL deal

KUALA LUMPUR: Malaysia is poised to emerge as a regional hub and centre of excellence for artificial intelligence (AI) in Southeast Asia, following the signing of a landmark strategic partnership between global AI leader NVIDIA Corporation and YTL Power International Bhd.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said that the agreement marks a significant step in accelerating Malaysia’s AI capabilities through the development of advanced infrastructure powered by green energy.

The initiative, backed by a substantial investment of RM10 billion, underscores Malaysia’s ambition to position itself at the forefront of AI innovation in the Asean region.

“This landmark project includes the development of AI data centres, deployment of NVIDIA’s high-performance graphics processing units (GPUs), and most importantly, the creation of Malaysia’s own sovereign large language model (LLM),” Tengku Zafrul shared in a post on the social media platform X.

The sovereign LLM is expected to play a pivotal role in enhancing Malaysia’s digital autonomy by enabling the creation of AI solutions tailored to local languages, culture, and industries—supporting national security and propelling digital economic growth.

YTL Power, a unit of YTL Corporation Bhd, will lead the physical development of the AI infrastructure. The company is also tasked with building a robust AI ecosystem by engaging global technology firms, local suppliers, and Malaysian contractors—ensuring strong domestic participation.

Tengku Zafrul added that the partnership is a direct result of Prime Minister Datuk Seri Anwar Ibrahim’s international engagement efforts, which have opened the door to high-impact investments with the potential to reshape Malaysia’s economic and technological future.

The announcement follows a key meeting in December 2023, during which Prime Minister Datuk Seri Anwar Ibrahim engaged with NVIDIA chief executive officer Jensen Huang and YTL Power managing director Datuk Seri Yeoh Seok Hong to explore AI investment opportunities.

The deal is now regarded as a significant milestone that cements Malaysia’s position in the global AI supply chain and accelerates its drive towards sustainable, innovation-led growth.

© New Straits Times Press (M) Bhd

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