Key Takeaways
- • Megaspeed, a Singapore-based cloud computing firm whose executive Alice Huang is alleged to be a suspected Chinese spy, has been under investigation by Singapore authorities since February last year over potential false declarations related to server purchases.
- • US lawmakers from both parties are pushing to close a loophole that lets Chinese firms rent computing power from overseas data centres and access Nvidia chip-equipped systems remotely, according to Reuters.
- • The Wall Street Journal reported that tougher rules could include new export rules and licensing requirements for Malaysia, Thailand, Indonesia and Singapore.
- • Malaysia has approved 385.7 billion ringgit ($94.67 billion) in data centre-related investment since 2021, while Thailand has 42 data centres representing 3,400 MW of IT load.
- • Malaysia is weighing a law to monitor data centre operations, including their use of high-performance chips, to ensure restricted chips are used domestically rather than re-exported.
Summary
Southeast Asia's chip and data centre industries expect greater scrutiny following news of former Nvidia CEO Jensen Huang's affair with a suspected Chinese spy, according to Reuters, which placed the spotlight on Singapore and Malaysia. The alleged spy, Chinese businesswoman Alice Huang, was an executive at Megaspeed, a Singapore cloud computing firm with subsidiaries in Thailand, Indonesia, Malaysia, Australia and the US. Megaspeed has been under investigation by Singapore authorities since February last year over potential false declarations related to its server purchases and other related offences.
US lawmakers from both parties are pushing for tougher restrictions on China's access to advanced AI chips. Washington restricts exports to China of Nvidia's most advanced chips, but lawmakers want to close a loophole that allows Chinese firms to rent computing power from overseas data centres. The Wall Street Journal reported that tougher regulations could include new export rules and licensing requirements for Malaysia, Thailand, Indonesia and Singapore. Ke Yan, head of research at Shenton Research, said Southeast Asian operators will still obtain Nvidia chips, but must now prove where each chip sits and who it serves.
The region's data centre industry is expanding rapidly. Since 2021, Malaysia has approved 385.7 billion ringgit ($94.67 billion) in data centre-related investments, according to the trade ministry. Thailand has 42 data centres, representing 3,400 MW of IT load and about 750 billion baht ($22.58 billion) in investment as of February. Indonesia's data centre market was valued at $2.81 billion in 2025. Singapore raised its 2026 economic growth forecast in August to 4.5%-5.5% from 2.0%-4.0%, citing the AI cycle, and Malaysian construction rose 6% in the third quarter of 2026 on rising data centre projects. Gary Goh, CEO of Sprint DC, likened the situation to a "post-DeepSeek moment," warning of a possible short- to medium-term market shock to Malaysia's data centre market once new rules take effect.
Malaysia said on Thursday it was weighing a law to monitor data centre operations, stating it needed to ensure chips subject to US restrictions are imported for domestic use rather than re-export. An Asian neocloud CEO, who declined to be named, said operators were worried about additional export processes and longer chip delivery times. Jarick Seet, head of small-mid caps at Maybank, said Singapore would tighten its own rules but that this should not harm the region's prospects for buying chips. A senior executive at a Singapore chip maker, also unnamed, suggested tighter US controls could make it harder for China to obtain chips and that companies could relocate compute capacity to countries offering land, deals and power if US data centre construction slows following Democratic victories in key states in the midterm elections. Singapore's and Malaysia's trade ministries did not immediately respond to requests for comment.
US lawmakers from both parties are pushing for tougher restrictions on China's access to advanced AI chips. Washington restricts exports to China of Nvidia's most advanced chips, but lawmakers want to close a loophole that allows Chinese firms to rent computing power from overseas data centres. The Wall Street Journal reported that tougher regulations could include new export rules and licensing requirements for Malaysia, Thailand, Indonesia and Singapore. Ke Yan, head of research at Shenton Research, said Southeast Asian operators will still obtain Nvidia chips, but must now prove where each chip sits and who it serves.
The region's data centre industry is expanding rapidly. Since 2021, Malaysia has approved 385.7 billion ringgit ($94.67 billion) in data centre-related investments, according to the trade ministry. Thailand has 42 data centres, representing 3,400 MW of IT load and about 750 billion baht ($22.58 billion) in investment as of February. Indonesia's data centre market was valued at $2.81 billion in 2025. Singapore raised its 2026 economic growth forecast in August to 4.5%-5.5% from 2.0%-4.0%, citing the AI cycle, and Malaysian construction rose 6% in the third quarter of 2026 on rising data centre projects. Gary Goh, CEO of Sprint DC, likened the situation to a "post-DeepSeek moment," warning of a possible short- to medium-term market shock to Malaysia's data centre market once new rules take effect.
Malaysia said on Thursday it was weighing a law to monitor data centre operations, stating it needed to ensure chips subject to US restrictions are imported for domestic use rather than re-export. An Asian neocloud CEO, who declined to be named, said operators were worried about additional export processes and longer chip delivery times. Jarick Seet, head of small-mid caps at Maybank, said Singapore would tighten its own rules but that this should not harm the region's prospects for buying chips. A senior executive at a Singapore chip maker, also unnamed, suggested tighter US controls could make it harder for China to obtain chips and that companies could relocate compute capacity to countries offering land, deals and power if US data centre construction slows following Democratic victories in key states in the midterm elections. Singapore's and Malaysia's trade ministries did not immediately respond to requests for comment.
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