New trends in low water and electricity consumption, easy upgrade and migration of built-in data centers
[Interview with Digital Minister Gobin Xing]
Exclusive Report: Lim Siew Fung (Lim Siew Fung)
Technological improvements have mitigated the problem of “drinking water and electricity” in data centers. The government is focusing on improving infrastructure development in industrial zones and exploring the installation of built-in data centers in commercial buildings to encourage the widespread adoption of cutting-edge technology in the industrial and commercial sector, thereby effectively unleashing the economic value of 5G.
The data center is described as a “drinking water and electricity monster” due to its huge consumption of water and electricity, which in turn has drawn public attention to its management, water and electricity supply, and sustainable operation.
Digital Minister Gobin Star accepts”Nanyang Siang Pao》In an exclusive interview, it was pointed out that with the development of technology, the operating efficiency of data centers is also improving. The latest chips not only have better performance, but the facilities are also equipped with cooling functions, thereby reducing the consumption of water and electricity.
A recent science and technology delegation from Shenzhen, China recommended a small data center to the Ministry of Digital Affairs during an exchange visit to Malaysia. Gobbin Star indicates that the facility has built-in functions in the building, is easy to install and affordable, and is easy to upgrade and migrate. Most importantly, it consumes less water and electricity.
He said bluntly that 5G facilities support data centers to drive industry and commerce to increase production capacity, yet China currently lacks data center systems built into buildings. If this system is promoted, it will help expand the application of 5G in industry and commerce, especially to promote the adoption of cutting-edge technology by micro, small and medium-sized enterprises to increase production capacity.
Gobin Star: Meeting the needs of various industries
Discuss data center performance
Digital Minister Gobbin Star stressed that construction of data centers is being accelerated, and construction has already begun at facilities in Putrajaya and Johor.
“The government will continue to focus on building data centers in industrial zones and exploring in-building systems to benefit more micro, small and medium-sized enterprises.”
He also said that the actual use of 5G technology is to support industrial automation, enable equipment to operate 10 times faster and more efficiently for 24 hours, thereby increasing production and improving product quality, and ultimately helping the domestic economy develop.
Gobing Star told “Nanyang Commercial Daily” that China Digital Corporation is focusing on deploying 5G facilities in the investment zone. As of June of this year, the coverage rate of domestic 5G networks in densely populated areas reached 81.8% (COPA). In the same period, 5G usage rate was 43.6%, or equivalent, involving about 14.8 million users.
Establish energy and water supply regulations
In response to the problem that data centers consume large amounts of water and electricity, he pointed out that the government is formulating regulations on energy and water supply in this field to ensure the sustainable and efficient operation of facilities.
“Prime Minister Dato' Seri Anwar set up the Digital Department and appointed my leadership to promote the country's digital development. Now is a good opportunity to deploy the development of the digital sector.”
According to the data, China's investment amount was RM268 billion in 2020, and RM330 billion or a 23% increase in 2023, mainly driven by the electronic and electrical products and information and communication technology subsectors.
Gobbin Star indicates that the development of various industries in China is improving, especially through the widespread application of technology. It is expected that this development trend will continue.
“The digital economy accounts for 23.5% of GDP in 2023, and is expected to rise to 25.5% in 2025, or a quarter of Malaysia's GDP.
“We need to ensure that no one is left behind, and that we are prepared for the country's digital economy. Furthermore, Malaysia will assume the ASEAN presidency next year. It is an economy with a population of 0.7 billion. If the establishment of the ASEAN Digital Economy Framework (DEFA) is completed, it is expected to create a digital economy value of up to 2 trillion US dollars (about RM8 trillion 860 trillion) in 2030.
“Therefore, countries and enterprises must be prepared, and [the government] encourages everyone to make full use of high-end technology to increase production capacity.”
He mentioned that the government has successively introduced support measures including the 2030 New Industry Blueprint (NIMP2030) and the National Energy Transition Roadmap (NETR), etc., and the Ministry of Digital Affairs will focus on formulating policies in this field to meet current and future rapid development needs.
Digital Ministry's Vision: Building Malaysia into a Digital Nation
Mission: Promote the country's digitization process in all aspects, build a diverse digital ecosystem, and build a trustworthy world-class platform.
The 3 pillars and functions:
●Infrastructure: Improve infrastructure and digital applications, and strengthen the development of digital ecosystems
●Cybersecurity: Strengthen data supervision to improve reliability, transparency and accountability
●Talent: Improve the efficiency of government digital services, encourage the development of digital talents, and narrow the limitations and gaps in people's digital perception
Units under the Digital Department:
●National Digital Administration (Jabatan Digital Negara, formerly known as Malaysia's administrative modernization and management planning unit)
●Personal Data Protection Authority
●National Digital Corporation (DNB)
●Malaysia Internet Information Center (MYNIC)
●Malaysia Digital Economy Authority (MDEC)
●Malaysian Cyber Security Authority (CSM)
●Digital Company (MyDigital)
Invested 66.2 billion in 8 months
Eight months since the establishment of the Digital Department, China has attracted up to RM66.2 billion worth of investment in the digital economy, a significant increase over RM40 billion last year. Among them, participating giants include Google, Microsoft, ByteDance (ByteDance), Amazon Web Services (AWS), etc.
Gobbin Star said that the establishment of the Digital Department shows the importance the Malaysian government attaches to this field and strengthens the confidence of the outside world in Malaysia as an investment destination. The government also provides various facilities for data center investors, including rapid review and approval of the investment process to attract more investors.
He pointed out that in the past six months, investment growth has also shown that people have increased confidence in China. Today, the added value of the ringgit further reflects this increase in confidence, which also shows that foreign investors have a positive attitude towards Anwar's leadership and the Changming economic framework it has introduced.
“I am confident that through the advice and cooperation of various ministries and departments, Malaysia can establish a good ecosystem to catch up with the slow pace of development earlier, and allow other departments to use relevant technology to improve services and improve efficiency after infrastructure is set up.”
New Year's Eve launches regulatory guidelines
Contain AI according to risk requirements
Good people and bad people are all helped, and the power of artificial intelligence (AI) should not be underestimated!
To this end, the government is expected to launch the National Artificial Intelligence Regulatory Guidelines and Code of Ethics at the end of this year. It is not ruled out that high-risk activities will be regulated according to risk requirements.
The regulation of the above guidelines is carried out jointly by the Ministry of Digital Affairs and the Ministry of Science, Technology and Innovation.
In response to the fact that this code will focus on ethics or regulation and how to balance the development of new innovations, Gobbin Star said that people must understand that artificial intelligence gives equal power to the righteous and disruptors, and for this reason, the government must carefully consider the requirements of regulatory guidelines.
“The key issue is how to manage it. This involves the difference between governance and supervision. Supervision directly closes doors, while governance does not necessarily have to be completely blocked; as long as people don't cross the border.”
He said that the two departments are exploring the goal of introducing a code of ethics, and the part he is responsible for does not rule out further studying whether to set regulatory measures.
Insiders are required to provide advice
“Some activities are threatening; they need to be regulated. For example, nuclear technology needs to be regulated, but when it comes to waste disposal, only guidelines are needed. This is a question of different levels of risk.
“High-risk activities require regulation to ensure that people comply with regulations, which is our idea. Of course, I also agree that some activities require loose policies to encourage innovation. In view of this, it is not ruled out that guidelines, regulations, or divide-and-conquer schemes should be promoted according to the degree of risk.”
He emphasized that all of this requires discussion with professionals, including industry experts and academics to provide opinions and suggestions.
“Given that artificial intelligence involves cross-border operations, the G7 proposed global regulation of artificial intelligence at the 2023 Hiroshima summit. In the same year, representatives from China and the US were also invited to attend discussions at the first AI Security Summit held in London, England. Industry leaders such as Tesla CEO Musk were also invited to discuss the risks of artificial intelligence.”
Gobbin Star also used the US and the European Union as examples. The former adopted a relaxed attitude and only established President Biden's Executive Order, which provides a main outline of what can and cannot be done, without legal control.
“But it's basically a mechanism, that is, there are different standards to be followed in different fields. On the other hand, the EU has regulation of the Artificial Intelligence Act... These are all current international discussions, and our country will set guidelines and direction of regulation according to its own needs.”
Continuously learn and improve technology
Building a Trustworthy Ecosystem
Cybersecurity is preventable, and technology can't be prevented when it comes to chance. People can only continue to learn and improve technology from it. More importantly, the government must establish a trustworthy ecosystem.
Gobbin Star said that after the Microsoft global crash, people wanted to seek protection from it, but as a result, no one could give an answer.
He admits that the ultimate goal of promotion in the digital field is to achieve the goal of universal use, yet cyber security issues and the recent technological crisis have once again shaken people's confidence in technology.
In any case, Gobin Star pointed out that this does not mean that the pace of progress will stop. “Instead, the incident reminds the Digital Department to review every detail frequently and to be more open to what needs to be changed.”
He mentioned that when the big crash happened, people were all very confused by the blue screen, but the National Cyber Security Agency and the Malaysian Cyber Security Agency were quick to respond and suggest next steps.
“This shows that our digital sector is secure, but there are still many things that need to be processed. The most important thing for me is that we have the right people in the right place to provide cyber security assistance.”
Expanding the functions of the Personal Data Protection Bureau
Consult the opinions of experts and scholars
Gobbin Star said that the government needs more academics and experts to provide opinions and suggestions. To this end, he proposed expanding the scope of the functions of the Personal Data Protection Bureau.
The bureau is currently headed by Dr. Mohd Nazri, dean of the Institute of Artificial Intelligence (FAI) at the University of Malaysia (UTM).
Gobbin Star said that in order to ensure data security, in addition to having the latest facilities and systems, it is also necessary to have expert guidance and obsession, so that the government can prepare for the future.
“Although technology is changing rapidly, including evolving big data, artificial intelligence, generative artificial intelligence (GenAI), and even future new technologies, etc., I believe its development rules are the same. The focus is on how to manage it, which is why the Digital Department should be proactive in formulating policies.”
He used the Anti-Corruption Association as an example. The establishment of this agency is not only to enforce the law, but also to discuss the state of the system. If there is an error in the system, it is necessary to think and find solutions to structural problems.
“I suggest that the Personal Data Protection Authority should expand its functions so that Nazri can find more commissioners to provide opinions and suggestions, and bring them to the Cabinet and relevant ministries such as the Ministry of Science and Technology and the Prime Minister's Office to discuss solutions.”
He stressed that the Ministry is trying to build an ecosystem closer to demand, but what is more important is trust. “To establish a reliable system, people can trust us and invest in this field.”
Budget Seeks Funding
Reward merchants for using high-end technology
The Ministry of Digital Affairs focuses on improving the public's digital awareness and application capabilities, including helping employed people who may be eliminated by technology upgrade their skills or master new technologies through retraining programs.
The Ministry will seek funding in the upcoming budget and plans to provide incentives for businesses to use technology.
Gobbin Star said that the government is committed to improving the scientific and technological literacy of citizens so that they can use high-end technology to improve their competitiveness in studies, work, and business operations.
“To achieve this goal, the government launched the self-learning program 'AI untuk Rakyat' (AI untuk Rakyat) at the beginning of this year. Surprisingly, it attracted around 1 million participants in just half a year, showing the strong interest of Chinese people in this study program.”
Companies must deploy training in advance
He also said that the government is concerned about the elimination of certain occupations by artificial intelligence, so talent training must keep up with the pace, especially providing retraining or retraining plans for employees who may be eliminated.
“We can't wait until jobs are eliminated to provide training because the unemployed have lost their confidence by then. Nor can we require people to return to college to learn new technology, so we need to provide short, refined in-service training modules so they can explore new things on their own once they have mastered basic skills.”
He urged companies to deploy early and train for jobs that may be eliminated to help employees switch jobs or adapt to new jobs, thus protecting their livelihoods.
“In the upcoming budget, I will apply for funding from the Prime Minister to provide incentives and encourage businesses to use high-end technology.”
Gobing Star said bluntly that this is a virtuous cycle of investment. The government allocates funds to enterprises. After enterprises expand, they benefit employees, and also stimulate the country's economic growth.
“Another focus is on technical and vocational education courses (TVET) digital skills training to support the development of the digital economy. Emerging industries are likely to rise in the next 5 years, and we must prepare ahead of time.”
“Start up” a new ministry and start everything from scratch
Regarding being re-elected as head of the Commission, Gobbin Starr laughed that the biggest challenge was to “start up” (Startup) a new ministry. Everything started from scratch. At the time, there were no office buildings, tables, chairs, or even employees.
He recalled that after taking the oath of office on December 18 last year, his colleagues returned to their respective department's office buildings, but he and his wife had no choice but to drive home because they were “homeless.”
“Over the next few days, Deputy Minister Dato' Wilson Uga and I were busy looking for a 'new home', and the car and cafe temporarily became our office.
“This is a newly established ministry. Initially, there were only senior and deputy ministers. When there was nothing, everyone worked together to build everything, so I often laughed that I was also part of the “startup.”
“However, we would like to thank the Prime Minister and (then) Chief Secretary of the Government Tan Sri Mohd Zuki for their help in finding an office building for the Digital Ministry in Putrajaya. Many people are also keen to provide aid, particularly the support of civil servants, to make the Digital Ministry have the current team.”
Building a national digital ecosystem
Gobbin Star also pointed out that it was really difficult to get started, but after nearly 8 months of deployment, the Chief Secretary of the Government took another step to help the Ministry set up an office in Kuala Lumpur so that it could meet more relevant people in the industry.
“In line with the development of the digital sector, the Prime Minister attached great importance to the establishment of the Digital Ministry. Our mission is to promote the country's digitization process, formulate policies and measures for the digital field, and build a trustworthy world-class national digital ecosystem.”
After the 14th national election in 2018, Gobin Star was the Minister of Communications and Multimedia in the Greek Union government at the time, and carried out a number of reforms during his tenure, including the transition from analogue TV (analogue TV) broadcasting to digital TV (digital TV) broadcasting throughout the country.
The conceptual stock items related to the Malaysian Data Center compiled earlier are as follows:
Industrial sector
Technology sector
Telecom sector
Construction sector
Industrial sector
Data center operators
•Yang Zhongli Electric Power (YTLPOWR)
• Malaysia Telecom (TM)
•AIMS data center
• K2 data center
• Princeton Digital Group (Singapore)
• Bridge Data Center Company (Singapore)
• Singtel (Singapore)
• Equinix Inc. (US)
• AirTrun (Australia)
• China Universal Data Holdings (GDS) (China)
• ByteDance (China)
• Yondr Group (UK)
• Google (US)
•Yang Zhongli Electric Power (YTLPOWR)
• Malaysia Telecom (TM)
•AIMS data center
• K2 data center
• Princeton Digital Group (Singapore)
• Bridge Data Center Company (Singapore)
• Singtel (Singapore)
• Equinix Inc. (US)
• AirTrun (Australia)
• China Universal Data Holdings (GDS) (China)
• ByteDance (China)
• Yondr Group (UK)
• Google (US)
If there are any missing stocks or opinions about the data center, please leave a comment below to share.
Source: Nanyang Siang Pao
Disclaimer: This content is for informational and educational purposes only, and does not constitute any specific investment, investment strategy, or recommendation endorsement. The reader shall bear any risk and responsibility arising from reliance on this content. Always conduct your own independent research and evaluation and consult professional advice if necessary before making any investment decisions. The author and related participants are not responsible for any loss or damage resulting from the use or reliance on the information contained in this article.
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