The Daily Pulse of Bursa Malaysia

AI data centre boom or gloom for Malaysian players?

zaclim
Publish date: Wed, 15 Jan 2025, 07:53 AM
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The week started poorly for companies riding on AI/data centre trends.

On Jan 13, the U.S. announced tighter AI chip export restrictions to retain advanced computing within allied nations while blocking China, Russia, Iran, and North Korea. Under the new three-tiered system, Malaysia, classified as Tier 2, can import only 50,000 GPUs over two years and limit data centres to deploying 7% of their computing capacity locally.

The news has hit companies like YTL Power International Bhd, whose shares have thrived on the AI data centre hype. Investors worry about its ability to secure Nvidia’s highly sought-after chips. Shares of YTL Corp Bhd, holding 48.43% in YTL Power, fell 14%.

YTL Power reassured stakeholders, stating the U.S. rules shouldn’t affect its rollout of Nvidia-powered AI data centres or its customer pipeline. It is the only non-U.S. company in Asia selected by Nvidia for its DGX Cloud AI platform.

Mah Sing Group Bhd also faced a share price drop from RM1.70 (Jan 10) to RM1.61 (Jan 14). The company expressed confidence in complying with U.S. standards to ensure its data centre projects proceed. In partnership with Bridge Data Centres, Mah Sing is developing a 300MW data centre hub (scalable to 500MW) set to operate by 2026. It also owns 42 acres in Johor Bahru for potential expansion.

As newly elected U.S. President Donald Trump takes office, his policies will shape the future of Malaysia’s AI data centre players.

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