What changed
Malaysia's Digital Ministry is reviewing legislation to require data center operators to disclose the number of AI accelerators they import, their power consumption, and the physical locations of their facilities. The government also plans to charge operators for unused electricity capacity they reserve. These measures aim to prevent the diversion of restricted hardware to countries like China and optimize the use of the country’s power infrastructure.
What this means in practice
The proposed law will track data center operations throughout their lifetime, not just during the project approval stage. Operators will be required to report GPU imports, power consumption, and the identities of operators and hyperscale customers. Additionally, data center operators will pay for all reserved electricity capacity, regardless of actual usage. For example, if a data center secures 10,000 kW of power but only uses 5,000 kW, the operator will still pay for the full amount. This is intended to discourage companies from reserving unnecessary capacity and to deter rerouting AI hardware to China.
Limitations and availability
While power consumption data could help detect discrepancies between GPU imports and actual usage, it is not a reliable method for determining the number of AI accelerators deployed. Different GPU models have varying power ratings, and actual consumption can differ significantly under workloads. Without detailed server configurations, PUE data, or physical audits, estimates of GPU deployment remain imprecise. The government has not specified whether operators must disclose GPU models or serial numbers, nor whether on-site inspections will be conducted. Malaysia's Minister of Investment, Trade and Industry, Datuk Seri Johari Abdul Ghani, mentioned cooperation with U.S. authorities but did not confirm the extent of data disclosure requirements.
