Malaysian conglomerate YTL's utilities unit (YTLP.KL) will partner with U.S technology giant Nvidia (NVDA.O) to develop artificial intelligence (AI) infrastructure in the Southeast Asian country, in a $4.3 billion investment deal.
The first phase is expected to be operational by mid-2024, YTL Power International said in a statement on Friday.
Under the deal, the companies will collaborate on building Malaysia's fastest supercomputers using Nvidia AI chips and with YTL Power International also utilising Nvidia's AI cloud computing platform to build a large language model in Malay, YTL Power said.
The announcement confirmed the project would be hosted at YTL's data centre park in Kulai, Johor.
The partnership is set to strengthen Southeast Asia’s fast-growing AI ecosystem as well as Malaysia's ambitions as a semiconductor manufacturing power. The country has seen rising multi-billion dollar investments from global semiconductor players in recent years, including from Intel (INTC.O) and Infineon (IFXGn.DE).
"Malaysia is an important hub for Southeast Asia computing infrastructure, which requires access to land, facilities and power, and YTL could play a great role in that," Nvidia CEO Jensen Huang told reporters earlier in the day, without directly confirming the deal.
Prime Minister Anwar Ibrahim posted on social media platform X, formerly known as Twitter, that the collaboration between Nvidia and YTL will involve an investment worth 20 billion ringgit ($4.29 billion).
"The decision to invest in Malaysia is a clear signal that foreign investors, especially technology giants, continue to make the country a primary destination of choice in this region," Anwar said, following a meeting with Huang and YTL Power managing director Yeoh Seok Hong in Malaysia's administrative capital Putrajaya.
($1 = 4.6620 ringgit)
