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Johor data-centre boom could absorb most new Peninsular Malaysia power by 2031
Johor’s data-centre industry could require about 30TWh of electricity a year by 2031, equal to 18% of Peninsular Malaysia’s total supply, according to BMI research cited on 23 October. The state already has about 825MW of operational capacity, with another 3.9GW expected over the next three to five years as cloud and AI demand expands.
BMI warned that Johor faces tighter electricity-supply constraints than peer hubs including Sydney, Melbourne and Batam. It said the critical bottleneck is not headline generation capacity but the slower build-out of grid connections in concentrated areas such as Sedenak and Nusajaya, even as Tenaga Nasional plans RM43 billion of grid upgrades that can take five to 10 years.
Malaysia’s AI-infrastructure story is becoming an energy-infrastructure test: data-centre investment may be delayed, repriced or forced to fund grid upgrades if power access cannot keep pace.
Watch Tenaga Nasional’s grid capex phasing, connection approvals for Johor projects and the first 300MW tranche of YTL Power’s data-centre campus expected in 1Q 2027.
AI-stock drops dragged global markets lower while oil jumped
Sharp falls in AI-related stocks overwhelmed global markets on 22 October as oil prices jumped on concern over the war with Iran. AP said technology weakness was strong enough to mask gains across many non-tech US stocks.
The sell-off followed a period in which AI enthusiasm had driven valuations and index concentration. Rising oil prices added a second shock by increasing inflation pressure and reducing the likelihood that central banks could look through price gains.
The episode shows how market concentration in AI and the oil shock can combine to hit portfolios, currencies and funding conditions at the same time.
Watch earnings from major AI-exposed technology firms and whether oil-price gains feed into inflation expectations.
US Commerce moved to award US$389 million for power-semiconductor and critical-material R&D
The US Commerce Department said on 22 October that it would award up to US$389 million in R&D funding for power semiconductors and critical materials. The proposed awards include up to US$73 million for Vertical Semiconductor to advance vertical gallium nitride power semiconductors for AI data-centre racks.
Power chips are becoming a bottleneck for AI infrastructure because data-centre racks require efficient conversion, thermal handling and high-voltage performance. Funding for gallium nitride and related technologies links the CHIPS agenda to grid resilience, fusion, advanced computing and defence applications.
The awards signal that the semiconductor race is shifting from leading-edge logic alone to power electronics that determine AI data-centre energy efficiency.
Watch award finalisation, technical milestones, private matching capital and whether Asian suppliers face new competition in power-device markets.
China’s draft AI export controls may raise costs for model developers going abroad
Analysts said on 17 October that China’s proposed AI export controls could impose short-term adaptation costs on domestic model developers targeting international markets. The draft covers 23 AI-related technologies including models, agents and chip designs, with possible thresholds tied to computing power, parameter count and global rankings.
The uncertainty is especially important for open-weight Chinese models deployed through global cloud providers, because exporting model weights could require licensing. A MOFCOM spokesperson said the rules were targeted and limited, and that most AI technologies would remain freely exportable.
Chinese open-weight models have become globally competitive, so licensing uncertainty could affect cloud marketplaces, enterprise AI adoption and US-China technology competition.
Watch how the final rules treat APIs, mobile apps, open-source releases and revenue-sharing arrangements with overseas hyperscalers.
Ringgit opened firmer as AI worries weakened the US dollar
The ringgit opened higher on 23 October at 4.0785/4.0855 against the US dollar, compared with 4.0815/4.0850 at the previous close. Bank Muamalat’s chief economist linked the move to a softer greenback after equity prices fell on doubts about near-term returns from AI-related investment.
The same note said US two-year and 10-year Treasury yields had fallen by 16bp and 17bp to 4.64% and 4.95%, respectively, while the US Dollar Index eased to 101.625. The ringgit was mixed against ASEAN peers, gaining against the Thai baht and Indonesian rupiah but easing against the Singapore dollar.
Malaysia’s currency is being pulled into the global AI-capex and Fed-rate debate, not just domestic macro news, making US tech sentiment relevant to local funding conditions.
Watch the next Federal Reserve decision and US PCE inflation release for confirmation of whether rate-hike expectations continue to fade.
US Treasury proposed wider curbs on high-tech investment in China and other adversaries
The US Treasury proposed a rule on 22 October that would expand restrictions on outbound investments into China and other countries of concern. The rule would cover areas including hypersonic systems, supercomputing, biotechnology and artificial intelligence, which the administration also described using the term superintelligence.
The proposal extends the US strategy from export controls into capital and know-how controls, aiming to stop US money and expertise from strengthening rival strategic technologies. Beijing criticised the move as interference in normal economic and trade cooperation, underscoring that technology finance is now part of the broader US-China trade conflict.
Tighter outbound-investment rules could reshape venture, private-equity and corporate technology flows across Asia, especially in AI, chips, biotech and defence-adjacent computing.
Track the public-comment process, final rule scope, definitions of covered transactions and whether allied governments adopt similar outbound-investment screening.
Chinese tech giants placed large orders for export-compliant Nvidia workstation GPUs
Chinese technology companies including ByteDance, Alibaba and Tencent placed large orders for Nvidia RTX Pro 5500 workstation GPUs, according to reports published this week. The orders were described as export-compliant attempts to keep AI ambitions moving despite US restrictions on higher-end chips.
The reported demand shows that US export controls have not ended Chinese appetite for Nvidia hardware, but have redirected it toward lower or compliant configurations. Supply fulfilment remains uncertain, and large orders may reflect scarcity hedging as much as immediate deployment plans.
China’s workaround demand can tighten global GPU supply, influence Nvidia revenue mix and shape how export controls affect AI competition rather than stopping it outright.
Watch Nvidia allocation, US licensing changes, Chinese domestic accelerator adoption and whether cloud pricing rises for constrained AI compute.
US Democrats framed China chip restrictions as key lever for AI edge
SCMP’s semiconductor topic page on 22 October highlighted remarks by US Democrat Jim Himes that chip restrictions are a key lever for maintaining the US AI edge over China. He argued that slowing dispersion of advanced chips into China is essential for Washington in the global technology race.
The remarks show that support for advanced-chip controls is not confined to one US party, even near midterm elections. That bipartisan logic complicates expectations that US-China AI dialogue alone will ease semiconductor restrictions.
Sustained US chip controls affect AI data-centre supply chains, Malaysian semiconductor exposure and Chinese demand for alternative compute architectures.
Watch US congressional proposals on chip export enforcement and whether restrictions expand to optical transceivers or cloud access.
US stocks fell as oil hit multi-year highs and AI volatility persisted
Wall Street closed broadly lower on 23 October as oil prices climbed to their highest level in more than four years, according to AP. The S&P 500 fell 0.2%, the Dow Jones Industrial Average dropped 541 points, or 1%, while the Nasdaq rose 0.2% as some large technology stocks steadied.
Brent crude traded around US$115 a barrel intraday after rising from below US$97 at the start of October. AP said three out of four S&P 500 stocks were lower, reflecting broad pressure from energy costs even as AI-related shares remained volatile after recent valuation concerns.
Higher oil prices and AI-stock swings are tightening global financial conditions, with spillovers to Asian currencies, inflation expectations and risk appetite.
Watch the coming US PCE inflation print and whether Brent holds above US$110 into the Fed meeting week.
TSMC sought chipmaking equipment that avoids Chinese rare-earth magnets
TSMC has asked suppliers whether they can provide factory-automation equipment using motors that do not depend on rare-earth materials, according to a 22 October report citing Reuters. The move responds to the risk that China’s export controls could disrupt fab operations through components embedded deep in production tools.
Motors using rare-earth magnets are common in high-precision automation because they offer compact size, efficiency and control, so substitutes may involve trade-offs. The request shows how export controls can reach beyond headline chips into factory uptime, maintenance spares and equipment qualification.
Any disruption to TSMC’s fabs would ripple through AI chips, smartphones, automotive electronics and ASEAN electronics exporters that depend on Taiwanese wafers.
Watch whether equipment makers qualify rare-earth-free alternatives, whether China changes export licensing, and whether fab operators build larger spares inventories.
Malaysia drafts data-centre law to manage energy, water and local value
Malaysia’s Economy Ministry said on 19 October that the government is drafting a Digital Infrastructure (Data Centre) Bill, expected to go to cabinet next year. The bill is intended to manage energy and water use, environmental impacts and the quality of investment in Malaysia’s digital ecosystem.
The ministry’s move followed Prime Minister Anwar Ibrahim’s call for closer scrutiny of infrastructure readiness, energy supply and resource efficiency. The government has also signalled that data-centre investors should pay for electricity-grid upgrades they require, and that power supply for the sector should not crowd out households or other industries.
The policy direction changes Malaysia’s data-centre proposition from low-cost expansion to regulated, resource-priced growth, with direct implications for hyperscalers, industrial parks and utilities.
Watch the cabinet submission timeline in 2027 and whether the bill sets binding power-usage effectiveness, water-usage or local-content requirements.
