KUALA LUMPUR: Data centres will become more important with the availability of cheaper artificial intelligence (AI) models in the market, says Gobind Singh Deo.
The Digital Minister said with the cheaper models entering the market, the country can anticipate a larger scale of the use of AI.
“DeepSeek is an AI model that costs a lot less,” said Gobind, “and it allows for new technology to be a lot cheaper.”
He said this new AI development seems to show that it needs less energy resources.
“A lot more people will be using these (AI) services. And if that is the case, then of course there will be an increased demand for data,” he told reporters after the launch of 5G Advanced here yesterday.
Asked if the Chinese AI startup, DeepSeek, could pose a threat to the country’s data centre boom, he said: “I don’t think so.”
The main challenge, he said, is how the country can ensure policies designed earlier can fit into these new developments, and how it is scaled.
“What the government must do is to keep abreast with all developments with AI around the world,” he said.
It was reported on Jan 28 that DeepSeek’s launch caused YTL-related stocks and local technology counters to drop.
US tech stocks also suffered a significant drop in pre-market trading.
Nvidia Corp, which is at the centre of the AI revolution for its graphic processing units (GPUs), saw its market capitalisation plunge by over US$600bil as investors question the risk rewards trade-off from AI.
YTL Power International Bhd partners with Nvidia Corp in building an AI data centre in Kulai, Johor.
With investors fretting over the future demand for YTL Power’s infrastructure amid the emergence of DeepSeek, YTL Power shares fell by almost 11% to RM3.22 on Jan 27.
One for the album: (Front row, starting third from left) Ericsson Malaysia, Sri Lanka and Bangladesh president and chief executive officer David Hagerbro, Deputy Digital Minister Datuk Wilson Ugak Anak Kumbong, Gobind, Azman and other guests posing for photographs after the launch of of 5G Advanced in Kuala Lumpur. — IZZRAFIQ ALIAS/The Star
Meanwhile, Gobind said the government is looking into data compliance by DeepSeek, something that other countries are also concerned about.
The study, he said, also looks at how DeepSeek can impact energy consumption and how the country can benefit from it.
Separately on the National AI Office, which was launched last December, Gobind said the office is developing AI solutions in five areas – transport, health, agriculture, SMEs and MSMEs, and government digital services.
He said the National AI Office is isolating problems in these sectors and finding solutions with AI, adding that it was given three months to work on it.
He said the implementation of AI and tech must be done at a faster pace.
“We need to move a lot faster. We need to start delivering in terms of solutions that deal with problems in all sectors.
“We are working with all the ministries to look at what the problems are.
“We are creating centres of excellence in the ministries themselves, run by officials from the ministries, and headed by the ministers themselves,” he said.
Meanwhile, Gobind said Malaysia is the first country within Asean to launch 5G Advanced, a new generation of 5G network.
Digital Nasional Bhd chief executive officer Datuk Azman Ismail said 5G Advanced leverages the existing 5G infrastructure to offer enhanced capabilities and performance.
