{"id":105088,"date":"2025-02-04T11:45:35","date_gmt":"2025-02-04T03:45:35","guid":{"rendered":"https:\/\/iqiglobal.com\/blog\/?p=105088"},"modified":"2026-01-09T15:58:22","modified_gmt":"2026-01-09T07:58:22","slug":"malaysia-data-centre-deepseek","status":"publish","type":"post","link":"https:\/\/iqiglobal.com\/blog\/malaysia-data-centre-deepseek\/","title":{"rendered":"Malaysia’s Data Centre Continues To Accelerates Despite DeepSeek’s\u00a0Shock | IQI \u00a0"},"content":{"rendered":"\n

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China’s DeepSeek<\/mark><\/a> has officially joined the AI chat scene<\/strong>, aiming to challenge the dominance of the US’s ChatGPT<\/mark><\/a>. <\/p>\n\n\n\n

Even with the competition heating up<\/mark><\/a>, DeepSeek’s arrival has quietly sparked some concerns about the long-term viability<\/strong> of Malaysia’s data centre expansion. <\/p>\n\n\n\n

However, these worries are now transforming into enthusiasm<\/strong> as the landscape becomes more defined.  <\/p>\n\n\n

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Recent analysis from Kashif Ansari, Co-Founder and Group CEO of Juwai IQI<\/strong>, indicates that Malaysia’s data centre expansion is set to gain substantial momentum<\/strong> from the latest advancements in AI technology. <\/p>\n\n\n\n

Mr. Ansari states, “DeepSeek shocked the world with a large language model<\/strong> that seems comparable to those offered by competitors like OpenAI—at a fraction of the cost.”  <\/p>\n\n\n\n

He then continues explaining that affordable AI solutions like DeepSeek are expected to greatly increase the demand for data centres<\/strong> in Malaysia.  <\/p>\n\n\n\n

The reduced costs associated with AI make it easier for businesses<\/strong> to adopt AI-driven tools, which were previously limited by high expenses<\/strong>. A survey conducted in late last year revealed that financial limitations were the primary obstacle<\/strong> for companies looking to embrace AI. <\/p>\n\n\n\n

As LLMs become more affordable,<\/strong> the number of AI-driven applications is set to soar, leading to an unprecedented demand for data centres.  <\/p>\n\n\n

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Supporting this perspective, Morgan Stanley of Morgan Stanley Investment Banking<\/mark><\/a> anticipates a 4% rise<\/strong> in power demand across the Asia-Pacific region (excluding China) if tech firms increase their investments in response to AI’s lower energy requirements<\/strong>.  <\/p>\n\n\n

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“For Malaysia’s real estate market, this means a consistent and possibly increasing demand<\/strong> for land suitable for data centre development.”<\/p>\n<\/blockquote>\n\n\n\n

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While not every data centre is prepared to meet the changing needs of AI, Malaysia is well-positioned<\/strong> with its strategic advantages. <\/p>\n\n\n\n

“Data centres originally built for enterprise IT, cloud computing, and general-purpose workloads often lack the power, cooling, and networking infrastructure needed for AI,” Mr. Ansari notes.  <\/p>\n\n\n\n

“Malaysia, however, has billions of dollars in planned AI-ready<\/strong> data centres. Government initiatives and major investments from companies like Nvidia<\/strong>, ByteDance<\/strong>, Google<\/strong>, AWS<\/strong>, and Microsoft <\/strong>ensure this.”  <\/p>\n\n\n

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Despite many believed Malaysia would need billions of dollars to develop its own language model, DeepSeek achieved this for under $10 million<\/strong>.  <\/p>\n\n\n\n

At that price, Malaysia could afford to develop its own language models<\/strong>, integrating AI into research, education, and the broader economy.  <\/p>\n\n\n\n

Malaysian consumers will also benefit as AI becomes an integral part<\/strong> of everyday services. <\/p>\n\n\n\n

Catch Kashif Ansari insight on News Straits Times. <\/p>\n\n\n\n

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