Malaysia is set to become a leading artificial intelligence (AI) hub in Southeast Asia following a landmark RM10 billion partnership between U.S. tech giant NVIDIA Corporation and YTL Power International Bhd, Malaymail reported.

The strategic agreement was announced by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, who described the deal as a major step toward building green-powered AI infrastructure in the country. In a post on social media platform X, Tengku Zafrul said the initiative will include the development of AI data centres and the deployment of NVIDIA’s high-performance graphics processing units (GPUs).

A key component of the project is the creation of Malaysia’s own sovereign large language model (LLM), which would allow the country to develop AI tools tailored to local needs and languages, enhancing digital sovereignty and regional competitiveness.

YTL Power, a subsidiary of YTL Corporation Bhd, will lead efforts to build a full AI ecosystem in Malaysia. The project will involve partnerships with global technology providers, local suppliers, and Malaysian contractors to ensure broad participation and knowledge transfer.

Tengku Zafrul emphasized that the partnership is a direct result of Malaysia’s international outreach, particularly Prime Minister Datuk Seri Anwar Ibrahim’s engagement with global tech leaders. In December 2023, Anwar met with NVIDIA CEO Jensen Huang and YTL Power Managing Director Datuk Yeoh Seok Hong to explore investment opportunities.

According to Malaymail, the collaboration marks a major milestone for Malaysia’s digital economy and reflects growing international confidence in the country’s role as a regional technology leader.

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