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Juwai IQI Co-Founder Kashif Ansari Highlights Unprecedented Growth Potential in AI Infrastructure
Malaysia’s data center industry is set for exponential growth, fueled by the rapid evolution of artificial intelligence (AI) and the emergence of cost-effective models like DeepSeek. According to Juwai IQI Co-Founder and Group CEO Kashif Ansari, initial concerns over the sustainability of Malaysia’s data center expansion are giving way to optimism as lower AI costs drive demand for advanced infrastructure.
AI Affordability Unlocks New Opportunities
DeepSeek’s breakthrough—a large language model capable of competing with industry giants like OpenAI at a fraction of the cost—has fundamentally altered AI accessibility. Ansari emphasized that lower AI costs would eliminate financial barriers that have long prevented businesses from fully embracing AI-powered solutions. A November 2024 survey revealed that cost concerns were the primary obstacle to AI integration, a challenge that DeepSeek’s model appears to mitigate.
“Large language models needed to become more affordable before AI could reach mass adoption, and DeepSeek has taken a major step in that direction,” Ansari noted. With token pricing at just one-fifteenth of competitor Anthropic’s rates, AI adoption is expected to surge. As businesses increasingly incorporate AI into operations, demand for high-performance data centers will skyrocket, positioning Malaysia as a key player in the industry.
Malaysia’s Strategic Advantage in the Data Center Race
Global analysts have already identified Southeast Asia as a pivotal region for AI-driven data center expansion. A Morgan Stanley report projects that power demand across the Asia-Pacific (excluding China) could rise by 4% as tech firms ramp up investments due to AI’s reduced energy consumption. For Malaysia, this translates into heightened demand for land and infrastructure suited for data center development.
However, not all existing data centers are equipped to handle AI’s specialized requirements. Many facilities originally designed for general cloud computing lack the power, cooling, and networking capabilities needed for AI workloads. In contrast, Malaysia is proactively investing in AI-ready infrastructure, with billions of dollars committed to cutting-edge facilities backed by industry giants such as Nvidia, ByteDance, Google, AWS, and Microsoft.
Malaysia’s data center development pipeline currently stands at 1.2 GW, marking an extraordinary 600% growth over the next five years. Around 55% of these projects are concentrated in Kuala Lumpur, while 45% are in Johor, an emerging data hub. Blackstone, one of the world’s largest AI infrastructure investors, estimates that global data center expansion will require $2 trillion over the next five years, with Malaysia positioned as a key beneficiary of this investment wave.
The Shift to AI-Optimized Data Centers
AI’s growing computational demands are already reshaping data center design. Companies such as YTL Power are incorporating direct-to-chip liquid cooling into their facilities to manage the high power densities required for AI processing. Such innovations reinforce Malaysia’s reputation as a leader in next-generation data center infrastructure.
Beyond physical infrastructure, Malaysia offers key competitive advantages that make it a prime location for AI-driven growth. These include:
Affordable land and energy costs – Malaysia’s industrial power tariff is approximately $0.10 per kWh, significantly lower than Singapore’s $0.27 per kWh.
A highly skilled workforce and robust digital infrastructure – The country boasts a growing talent pool equipped for AI and data center operations.
Government incentives and strategic connectivity – Malaysia’s close ties to Singapore, ASEAN, and China provide seamless market access.
AI Becomes an Everyday Essential
Ansari predicts that Malaysia will not only benefit from hosting AI infrastructure but also from AI’s increasing affordability across multiple sectors. Previously, developing a national AI model was assumed to require billions of dollars. However, DeepSeek’s claim of creating a competitive model for under $10 million suggests that AI innovation is now financially viable for Malaysia.
This affordability paves the way for AI integration in research, education, and economic development, allowing Malaysia to harness AI’s full potential. Moreover, as AI-powered services become increasingly embedded in everyday tools, consumers will experience a transformation similar to that of mobile technology adoption.
“When mobile phones first emerged, they were inaccessible to many, but costs eventually fell, leading to widespread adoption,” Ansari explained. “AI is following a similar trajectory. It will soon become as ubiquitous and indispensable as electricity.”
Conclusion: Malaysia’s AI-Driven Future
As AI costs continue to decline, Malaysia is poised to experience a data center boom, driven by both global investment and domestic AI adoption. With its strategic location, infrastructure advancements, and cost advantages, Malaysia stands at the forefront of the AI revolution, solidifying its status as a critical hub for AI-powered innovation.
