KUALA LUMPUR: Malaysian companies remain confident that the United States' proposed restrictions on artificial intelligence (AI) chip exports will not hinder their operations.
The US is set to implement a new framework for exporting advanced computer chips used in AI development, aiming to balance national security concerns with the economic interests of manufacturers and allied nations.
However, the framework, unveiled on Monday, has sparked concerns among chip industry executives and European Union officials due to its potential impact on 120 countries, including Malaysia.
Malaysia has reportedly been classified as a Tier 2 country under the proposed rules, allowing imports of only 50,000 graphics processing units (GPUs) over two years.
Additionally, data centre operators in Tier 2 nations would be restricted to deploying a maximum of 7.0 per cent of their computing capacity within any single country.
Datuk Seri Yeoh Seok Hong, managing director of YTL Power International Bhd, expressed confidence that the company's ongoing plans to establish AI data centres powered by Nvidia Corp's advanced chips will remain unaffected by the proposed restrictions.
Despite the outlined limitations, Yeoh highlighted that YTL Power is the first non-US company in Asia to collaborate with Nvidia in deploying and managing a supercomputer powered by Blackwell GB200 GPUs.
The supercomputer, featuring 72 Blackwell GPUs and 36 Grace CPUs interconnected via NVLink, is designed to accelerate AI model development on Nvidia's DGX Cloud platform.
"We are confident the latest export restrictions will not impact our rollout," Yeoh told Business Times.
He further noted that American hyperscalers, including Nvidia, are exempt from the restrictions.
"As the sole non-US partner in Asia deploying Nvidia's latest chips on its DGX Cloud AI platform, we foresee no issues," Yeoh added, assuring that the sanctions would not disrupt YTL Power's customer pipeline for its AI data centres.
YTL Power first announced its partnership with Nvidia in December 2023 to develop AI infrastructure, coinciding with Nvidia CEO Jensen Huang's visit to Malaysia.
The company has allocated 100MW of its 500MW Kulai data centre capacity to AI infrastructure, with 20MW expected to become operational by mid-2025, depending on timely chipset deliveries.
Meanwhile, Mah Sing Group Bhd said the US planned restrictions will not hinder its collaboration with Bridge Data Centre (BDC) or the broader growth of Malaysia's digital infrastructure sector.
The group said while the specifics are still under review, it is optimistic about the resilience and potential of Malaysia's digital landscape.
Mah Sing said that to address these challenges and gain exemptions from imposed quotas, companies in Tier 2 countries like Malaysia have the opportunity to obtain validated end-user designations, provided they comply with US standards on security, cyber resilience and human rights.
"This compliance not only ensures uninterrupted access to critical technologies but also strengthens Malaysia's position as a trusted partner for global technology leaders. We will continue to monitor developments to ensure full compliance and mitigate potential risks," it said in a statement today.
Mah Sing's partner BD is primarily owned by Bain Capital, a US-based firm.
The group said it has, together with BDC, established two joint ventures to expand their data centre hub at Mah Sing DCHub@Southville City to 300-megawatt (MW) power capacity.
The group added that the first phase is slated to commence operations in 2026.
"The entire hub has the potential to support a 500MW power capacity. Additionally, Mah Sing's 17-hectare land at Meridin East township in Johor Bahru is strategically positioned for future development, capable of supporting an additional 300MW power capacity," it said.
Mah Sing added that the Malaysian technology sector has consistently demonstrated resilience and ingenuity.
"Through strong collaboration among industry players, we believe Malaysia will navigate these challenges successfully, driving sustained growth and innovation in the global digital economy," it said.