Hydroelectricity with low consumption and easy upgrade migration is the new trend for in-house datacenters

Technological advancements have alleviated the issue of high water and electricity consumption in data centers, while the government is focusing on improving the infrastructure development of industrial zones and considering installing built-in data centers in commercial buildings to encourage widespread adoption of cutting-edge technologies in the business sector, effectively unlocking the economic value of 5G.

Data centers have been described as 'electricity and water guzzlers' due to their massive water and electricity consumption, leading to public concerns about their management, water and electricity supply, and sustainability.

During a recent exchange visit by a technology delegation from Shenzhen, China, they recommended a small-scale data center to the Ministry of Digital. Gobin Singh mentioned that this facility features built-in functionalities, easy and affordable installation, as well as ease of upgrade and relocation, with the most crucial aspect being its lower water and electricity consumption.

He openly stated that 5G infrastructure supports data centers in enhancing business capabilities. However, our country currently lacks built-in data center systems within buildings. If such a system is promoted, it will help expand the business sector's utilization of 5G, particularly by promoting the adoption of cutting-edge technologies for capacity enhancement among micro, small, and medium enterprises.

Minister of Digitalization Cobainstar emphasized that the construction of datacenters is accelerating, with facilities in Putrajaya and Johor already under construction.

"The government will continue to focus on constructing datacenters in industrial areas and explore built-in systems to benefit more micro and small businesses."

He also mentioned that the practical application of 5G technology is to support industrial automation, allowing equipment to operate at 10 times the speed and efficiency 24/7, thereby increasing output and improving product quality, ultimately boosting the domestic economic development.

Cobainstar told "Nanyang Business Daily" that the national digital company is focusing on deploying 5G facilities in investment zones. As of June this year, the domestic 5G network coverage in densely populated areas has reached 81.8% (COPA), with a usage rate of 43.6% or about 14.8 million users.

In response to the issue of datacenters consuming large amounts of water and electricity, he mentioned that the government is developing regulations on energy and water supply for this sector to ensure facilities can achieve sustainable and efficient operation.

"Prime Minister Datuk Seri Anwar established the Digital Department and appointed me as the leader with the aim of promoting the country's digital development, which is currently a good opportunity to deploy digital domain development."

Data shows that in 2020, our country's investment was 268 billion ringgit, which increased to 330 billion ringgit in 2023, a growth of 23%, primarily driven by the electronics and electrical products, as well as the information and communication technology sub-sectors.

Gobin Singh pointed out that the development across various industries in our country is improving, especially through the extensive application of technology, and this momentum of development is expected to continue.

"In 2023, the digital economy accounts for 23.5% of the Gross Domestic Product, and it is expected to increase to 25.5% by 2025, or about a quarter of Malaysia's Gross Domestic Product.

"We must ensure that no one is left behind, and also prepare the country for the development of the digital economy. Furthermore, Malaysia will assume the chairmanship of ASEAN next year, representing an economic body of 0.7 billion people, if the ASEAN Digital Economy Framework (DEFA) is established, it is expected to create a digital economy value of up to 2 trillion US dollars (about 8.86 trillion ringgit) by 2030."

"Therefore, both the country and businesses need to be prepared, (the government) encourages everyone to fully utilize advanced technology to enhance productivity."

He mentioned that the government has successively launched support measures including the New Industry Master Plan 2030 (NIMP2030) and the National Energy Transition Roadmap (NETR). The Digital Department will focus on formulating policies in this area to address the rapid development needs of the present and future.

Mission: comprehensively promote the country's digitalization process, build a diverse digital ecosystem, and develop a trustworthy world-class platform.

3 major pillars and functions:

● Infrastructure: improve infrastructure and the application of digital technology, strengthen the development of the digital ecosystem

● Cybersecurity: enhance data supervision, increase reliability, transparency, and accountability

● Talent: enhance the efficiency of government digital services, encourage the development of digital talents, and reduce limitations and gaps in people's digital literacy

● National Digital Bureau (Jabatan Digital Negara, formerly known as the Malaysian Administrative Modernisation and Management Planning Unit)

● Personal Data Protection Bureau

● Digital National Company (DNB)

● Malaysian Network Information Center (MYNIC)

● Malaysian Digital Economy Institution (MDEC)

● Malaysian Cybersecurity Agency (CSM)

● Digital Company (MyDigital)

In the 8 months since the establishment of the Digital Department, the country has attracted as much as 66.2 billion Malaysian Ringgit in digital economy investments, a significant increase compared to around 40 billion Malaysian Ringgit last year. Among the giants participating are Google, Microsoft, ByteDance, Amazon Web Services (AWS), etc.

Gobind Singh Deo said that the establishment of the Digital Department demonstrates the Malaysian government's emphasis on this field, enhancing confidence from the outside in Malaysia as an investment destination. The government also provides various conveniences for data center investors, including expedited reviews, approval processes to attract more investors.

He pointed out that in the past six months, the growth in investment also highlights people's growing confidence in our country. Now, the appreciation of the ringgit further reflects this enhanced confidence, which also indicates that foreign capital holds a positive attitude towards Anwar's leadership and his unveiling of the bright economic framework.

Both good and bad receive assistance, the power of artificial intelligence (AI) should not be underestimated!

The government is expected to launch national artificial intelligence regulatory guidelines and ethical standards by the end of this year, not ruling out measuring high-risk activities according to risk demands and taking regulatory measures.

The specifications of the above guidelines are jointly carried out by the Ministry of Digital and the Ministry of Science, Technology, and Innovation.

Cobains emphasized that the guidelines will focus on ethics or regulations, as well as how to balance the development of startups. people must understand that artificial intelligence gives equal power to the just and the disruptors; therefore, the government must carefully consider the necessary regulatory guidelines.

The key issue lies in how to manage, which involves the differences between governance and regulation. Regulation directly closes the door, governance may not necessarily involve a complete lockdown, as long as people do not cross the line.

He said that the two departments are exploring the goal of introducing an ethical code, and the part he is responsible for does not rule out further research on whether to establish regulatory measures.

Some activities are threatening and need to be regulated. For example, nuclear energy technology needs to be regulated, but for waste disposal, only guidelines are necessary. This is the issue of different risk levels.

High-risk activities require regulation to ensure compliance with regulations, that is our idea. Of course, I also agree that some activities require lenient policies to encourage innovation. Therefore, there may be guidelines, standards, or a divide-and-conquer approach according to the level of risk.

He emphasized that all of this needs to be discussed with professionals, including industry experts and scholars providing opinions and suggestions.

Given that artificial intelligence involves cross-border operations, the G7 proposed global regulation of AI at the 2023 Hiroshima Summit. That same year, the inaugural Artificial Intelligence Security Summit held in London, United Kingdom, also invited representatives from China and the USA to discuss. Industry leaders such as Tesla's CEO, Musk, were also invited to discuss the risks of AI.

Using the United States and the European Union as examples, the former adopts a lenient attitude, only establishing Executive Orders from President Biden, providing a major outline of what is permissible and what is not, without legal regulation.

However, this is basically systematic, with different standards to follow in different areas. On the other hand, the EU has regulations on artificial intelligence... These are all current international discussions, while our country will set guidelines and regulatory directions according to its own needs.

Cybersecurity can be prevented, but technology failures are inevitable. People can only continuously learn and improve their skills, and more importantly, the government needs to establish a trustworthy ecosystem.

Gobin Xing said that after the global Microsoft crash, people sought assurance from it, but no one could provide an answer.

He admitted that the ultimate goal of promoting digitalization is universal usage; however, cybersecurity issues and recent major technology failures have once again shaken people's confidence in technology.

Regardless, Gobin Xing pointed out that this does not mean that progress will stop. Instead, the incidents remind the digital department to regularly review all details and maintain a more open attitude to respond to changing needs.

He mentioned that during major system crashes, people were puzzled by the blue screens, but national cybersecurity agencies and big data cybersecurity agencies quickly responded and proposed next steps.

"This indicates that our country's digital domain is secure, but there are still many things to deal with. For me, the most important thing is to have the right people in the right positions to provide assistance in cybersecurity."

Gobing Sing stated that the government needs more scholars and experts from within the industry to provide opinions and recommendations. To achieve this, he suggested expanding the scope of the Personal Data Protection Office.

Currently, the office is led by Dr. Mohd Nazri, Dean of the Faculty of Artificial Intelligence (FAI) at Universiti Teknologi Malaysia (UTM).

Gobing Sing mentioned that to ensure data security, aside from having the latest facilities and systems, expert guidance is also crucial to prepare the government for the future.

"Although technology is advancing rapidly, including constantly evolving big data, artificial intelligence, generative artificial intelligence (GenAI), and even future new technologies, I believe the development principles are the same. The key is how to manage them, which is why the digital department needs to formulate policies."

Using the Anti-Corruption Commission as an example, the establishment of such institutions is not just for enforcement, but also for examining system conditions. If errors occur in the system, it requires reflection and efforts to address structural problems.

"I suggest that the Personal Data Protection Bureau should expand its functions so that Nazri can find more commissioners to provide advice and suggestions, bring them to the Cabinet and relevant ministries such as the Ministry of Science and Technology, and the Prime Minister's Office to jointly discuss solutions."

He emphasized that the department strives to establish a more user-centric ecosystem, but more importantly, trust. 'To build a reliable system, others will believe in us and invest in this field.'

The Department of Digital focuses on enhancing the nation's digital awareness and application capabilities, including helping incumbent workers who may be phased out by technology to upgrade their skills or acquire new technologies through a retraining program.

The department will seek appropriations in the upcoming budget to plan rewards for businesses using technology.

Gobind Singh Deo stated that the government is committed to enhancing the nation's technological literacy so that they can leverage cutting-edge technology to improve competitiveness in aspects of learning, work, and business operations.

"To achieve this goal, the government launched the 'AI for the People' self-study program earlier this year. Surprisingly, it attracted approximately 1 million participants in just six months, demonstrating the strong interest of the people in this learning project."

He also mentioned that the government is concerned about the elimination of certain occupations by artificial intelligence, so talent training must keep pace, especially providing retraining or retraining plans for employees who may be eliminated.

"We cannot wait until the positions are eliminated to provide training, because by then the unemployed have lost confidence. We cannot require people to return to university to learn new technologies, so we need to provide short, refined on-the-job training modules to enable them to explore new things after mastering basic skills.

He urged enterprises to deploy in advance, provide training for positions that may be eliminated, help employees transition to new positions or adapt to new jobs, thereby safeguarding their livelihoods.

"In the upcoming fiscal budget, I will apply to the Prime Minister for funding to provide sponsorship and encourage businesses to use cutting-edge technology.

Goh Bin Sing bluntly stated that this is an investment in a virtuous cycle, with the government funding businesses, benefiting employees after expansion, and also stimulating national economic growth.

"Another focus is on TVET's digital skills training to support the development of the digital economy. There may be emerging industries rising in the next five years, and we must prepare in advance."

After the 14th National General Election in 2018, Gobind Singh Deo was the Minister of Communications and Multimedia in the then Pakatan Harapan government, and he implemented various reforms, including transitioning the nationwide broadcast from analogue TV to digital TV.

Datacenter operators
• Yang Zhongli Electric Utilities (YTLPOWR)
• Telekom Malaysia (TM)
• AIMS Datacenter
• K2 Datacenter
• Princeton Digital Group (Singapore)
• Bridge Datacenter Company (Singapore)
• Singapore Telecommunications (Singtel) (Singapore)
•Equinix Inc. (usa)
•AirTrunk (australia)
•GDS Holdings (china)
•ByteDance (china)
•Yondr Group (united kingdom)
•Google (usa)

If there are any missing stocks or thoughts on data centers, please leave a comment below to share.