Malaysia plans new law using data center power consumption to catch AI GPU smugglers
Malaysia plans to introduce a new law requiring data center operators to disclose their AI accelerator imports and power consumption to prevent the diversion of restricted hardware to countries like China.
The government will charge data center operators for the unused electricity capacity they reserve. The Digital Ministry is reviewing existing legislation to determine if local authorities can take action against entities that re-export processors subject to U.S. export bans.
Malaysia's Minister of Investment, Trade and Industry Datuk Seri Johari Abdul Ghani acknowledged on Thursday that some companies had rented space in Malaysian data centers to import GPUs legally, which they then shipped abroad in smuggling operations.
Malaysia wants AI accelerators imported into the country to be used domestically.
The plan to use power consumption data to detect potential GPU smuggling has merit but also has flaws. Real-world TDP variance and a lack of physical audits could undermine the new law.
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