The initiative, to be deployed under a partnership between YTL and Nvidia, includes developing Malaysia’s own LLM to build national AI capability and digital sovereignty
In sum – what you need to know:
Malaysia enters sovereign LLM race – The RM10 billion initiative includes developing Malaysia’s own large language model to build national AI capability and digital sovereignty.
Green-powered AI infrastructure – The Nvidia-YTL project will deploy high-performance GPUs in new data centers run on sustainable energy sources.
ASEAN tech ambitions advance – Malaysia positions itself as a neutral, strategic hub for semiconductors and AI, aligning with regional goals to lead in emerging technologies
Malaysia is paving the way to become a regional center of excellence for artificial intelligence (AI) following a new agreement between Nvidia and YTL Power International backed by a RM10 billion ($2.36 billion) investment, according to local press reports.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the initiative will include the construction of AI data centers powered by green energy and the deployment of Nvidia’s GPUs.
The collaboration will also lead to the development of Malaysia’s own sovereign large language model (LLM), advancing national AI capabilities while strengthening digital sovereignty, according to the reports.
YTL Power, which is a subsidiary of YTL Corporation, will lead the buildout of the AI ecosystem in partnership with global technology firms, suppliers, and local contractors, the reports added.
“This collaboration reflects our region’s strategic neutrality and growing capacity to position ASEAN as a global semiconductor and AI leader,” Zafrul noted on social media platform X.
Earlier this year, YTL Communications, the communications arm of YTL Corporation, signed two new memorandums of understanding (MoUs) aimed at accelerating AI adoption and enhancing network infrastructure in Malaysia.
One agreement, signed with global data center firm Equinix, will allow international enterprises to connect to YTL’s AI Cloud through Equinix’s interconnection services. This gives businesses secure and high-performance access to YTL’s GPU-as-a-Service platform for running AI workloads.
The YTL AI Cloud is hosted at the company’s Green Data Center Park in Johor, which is fully powered by renewable energy. According to YTL Communications CEO Wing K. Lee, this setup enables companies to harness AI without adding to their carbon footprint.
“By integrating state-of-the-art AI infrastructure with green energy, we’re helping businesses drive innovation in a way that aligns with their environmental goals,” said Lee. “And thanks to Equinix Fabric’s global connectivity, this value proposition can reach enterprises around the world.”
In a separate agreement, YTL has partnered with Transcelestial to deploy the company’s wireless laser communication technology. The solution will be used to improve backhaul connectivity between cell towers across Malaysia, potentially offering a faster and more cost-effective alternative to traditional fiber rollout.
Last month, Nvidia said it is partnering with European governments and major tech, telecom and cloud providers with the aim of deploying AI infrastructure across the continent.
The initiative spans France, Italy, Spain, the U.K. and several Nordic countries, with deployments of Nvidia’s new Blackwell platform forming the technological backbone of sovereign AI ambitions. Collectively, these projects are expected to deliver more than 3,000 exaflops of compute capacity, enabling enterprises, startups and public sector institutions to securely develop and scale advanced AI models.