WHILE Malaysia’s planned AI (artificial intelligence)-grade data centre supply capacity at 2.8GW does outperform most markets which exhibit below-average performance, it is vital to realise that AI adoption is contingent on the ability for AI-powered devices to connect to the internet.

Such is the challenge poser for Malaysia which demonstrates a relatively low 5G adoption rate compared to its Southeast Asian peers, according to BMI Country Risk & Industry Research.

“Although Malaysia is making good progress with regard to fixed high-speed broadband connectivity, it is in the 5G arena that digital readiness will be assessed,” the research house pointed out in a quick view on roll-out of AI-grade data centres to support sustainable digital economy in Malaysia.

“As of 2023, the 5G penetration rate was estimated at 24.12% of the total mobile base; this will increase to 40.82% by end-2024 and will eventually reach approximately 86% by end-2033.”

However, such growth trajectory rate is perceived by BMI as modest compared to regional peers such as Singapore which is forecast to achieve a penetration rate of 141% by 2033, up from 52% in 2024 and Thailand which penetration rate is expected to rise from 45% to 121% within the same period.

The research house was commenting on the joint venture between Telekom Malaysia Bhd and Nxera, the regional data centre arm of Singtel’s Digital InfraCo unit to develop data centres in Malaysia starting with a sustainable, hyper-connected AI-ready data centre campus in Johor.

BMI’s total market supply projection reveals that while Malaysia’s current live capacity slightly outperforms its sample average with the country’s planned capacity significantly surpasses this benchmark at 1.1GW with the new 64MW AI data centre campus adding to this figure.

Discounting this latest project, Malaysia’s planned capacity stands at 2.8GW whereas most other markets exhibit below-average performance, according to BMI.

Meanwhile, Telekom Malaysia’s 2023 sustainability report has stressed the high environmental standards to which the new data centre intends to adhere.

This includes the ambition that two out of its seven total data centres within Malaysia implement a rainwater harvesting system and water filtration system which effectively reduces water consumption that is required for cleaning tasks.

This is extended towards monitoring and enhancing power usage effectiveness (PUE), a measure of energy efficiency within data centres, in an effort to optimise efficiency.

Consequently, the average PUE ranges between 1.6 and 1.8, aligning with the global industry average of 1.2-2.0 despite increasing energy use cases. -  July 30, 2024

https://focusmalaysia.my/malaysias-low-5g-adoption-rate-must-play-catch-up-to-active-roll-out-of-ambitious-ai-grade-data-centres/