Adam Ooi bets $5M on Southeast Asia’s AI data centers: What it means for China’s chip evasion

Adam Ooi, a director at a Malaysia-based family office, has invested $5 million into a fund leasing AI servers, signaling Southeast Asia’s rising prominence as a hub for AI data processing amid U.S. export restrictions on advanced chips.

Chinese companies, facing U.S. limits on AI chip imports, are increasingly processing data overseas to bypass these restrictions. A Wall Street Journal report detailed how four Chinese engineers traveled from Beijing to Malaysia carrying 80 terabytes of AI training data on hard drives.

“To bypass U.S. restrictions on advanced AI chips, Chinese companies are adopting innovative strategies, including processing data overseas,” the report noted.

Southeast Asia’s data center capacity is expanding rapidly, with Jones Lang LaSalle estimating nearly 2,000 megawatts across Singapore, Malaysia, Thailand, and Indonesia—matching the combined capacity of London and Frankfurt, Europe’s largest markets.

Malaysia’s AI chip imports from Taiwan surged to $3.4 billion in March and April alone, surpassing the total for 2024 so far, underscoring the region’s growing role in the AI supply chain.

Chinese AI developers have also substituted domestic chips for American ones in some cases, while others attempt to smuggle AI hardware through third countries, highlighting the complex efforts to evade U.S. sanctions.

Ooi’s $5 million bet reflects confidence in Southeast Asia’s strategic position as a data processing hub, leveraging regional infrastructure to support AI development amid geopolitical tensions.

“There are nearly 2,000 megawatts of data-center capacity in Southeast Asia, a figure that matches the combined capacity of London and Frankfurt,” according to Jones Lang LaSalle.

This investment and regional growth illustrate how Southeast Asia is becoming a critical node in the global AI ecosystem, especially for Chinese firms navigating export controls.

Adam Ooi, a Malaysia-based investor, has committed $5 million to AI data centers in Southeast Asia, a region rapidly expanding as Chinese firms circumvent U.S. chip restrictions by processing AI data abroad. Malaysia’s AI chip imports from Taiwan surged to $3.4 billion, highlighting the area's growing tech role.