Malaysia Emerges as AI Data Center Hub, Straining Resources and Chip Controls

US and Chinese tech giants are investing billions in Malaysian data centers, making the country a key node in the global AI infrastructure buildout. This influx strains local power and water resources and tests Washington's export controls on advanced chips, as Malaysia becomes a potential transshipment point. The development signals a geographic diversification of AI compute capacity and a new front in US-China tech competition.

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