Malaysia curbs non-AI data centres as power squeeze looms

Kuala Lumpur: Malaysia has frozen the development of new data centres not used for artificial intelligence over power and water concerns, Prime Minist...

Kuala Lumpur: Malaysia has frozen the development of new data centres not used for artificial intelligence over power and water concerns, Prime Minister Anwar Ibrahim said Tuesday, as the country pivots to resource-hungry AI facilities.

The Southeast Asian nation is emerging as a major regional IT infrastructure hub, but it faces growing challenges, including a sharp rise in electricity and water supply demands -- both needed to keep the data centres running.

"For the past one and a half years, almost two years ago, we have limited the entry of new data centres that are not related to AI," Anwar told Malaysia's parliament during a question session.

"So all new applications that were not related... have already been stopped," he said.

Data centres that offered high-technology benefits related to AI will still be approved, he added.