KUALA LUMPUR: Telenor ASA, a major shareholder of CelcomDigi Bhd, is eyeing the development of a sovereign, sustainable “artificial intelligence factory” (AI factory) in Malaysia – a data centre designed to deliver local compute power.
Telenor Group senior vice-president and head of AI Dr Ieva Martinkenaite said the proposed facility would draw on the company’s experience in Norway, where it established its first AI factory to provide compute-as-a-service within a sovereign, sustainable framework.
“We see an opportunity to work with the Malaysian government on secure, scalable AI infrastructure that benefits the country. Telcos are trusted partners in AI ecosystems, we are not just connectivity providers anymore, but technology players,” she told reporters at the release of Telenor Asia Digital Lives Decoded 2025: Building Trust in Malaysia’s AI Future Report today.
Martinkenaite said the AI factory could support Malaysia’s cloud and data centre strategy with potential payback to the economy. “We are also ready to contribute perspectives on training and responsible AI as a service. This is certainly also an opportunity to monetise.”
CelcomDigi chief innovation officer Kugan Thirunavakasaru stressed the need for local sovereign data to embed AI into services for its over 20 million users.
“In two to three years, every individual could have a personal AI agent, but that requires massive compute power,” he said. “The AI factory concept aligns well with CelcomDigi’s vision, as future AI agents will be embedded into services and perform end-to-end tasks for users.”
He said scaling to meet this demand is not easy without the right capability and compute power. “Pooling resources with Telenor gives us the scalability to meet that demand while ensuring ethics and governance remain in place.”
The report, now in its fourth year, surveyed 1,000 Malaysian internet users to understand how AI is reshaping digital lives.
Signalling a significant behavioural shift, with 89% of Malaysian internet users saying they use AI today, up from 75% in 2024. Notably, the number of internet users who use AI for financial purposes or health and fitness has more than doubled. Today, a quarter of Malaysian internet users surveyed intentionally use AI tools multiple times a day.
They are also leveraging AI to enhance their skillsets. The top competencies AI has helped improve include problem-solving (56%), data analysis (48%), research (47%) and creativity (45%).
Over half (51%) of Malaysian internet users now use AI at work, up from 37% in 2024. Top applications of AI in the workplace include using it for analytics (59%), content development (52%), and customer service (45%).
For those who are already using AI at work, they are 17% more likely to believe that AI will have a very positive impact on their job security and 13% more likely to believe the same for the country’s economy, signalling that AI adoption helps to shape people’s confidence.
However, only one in three of those who use AI at work say their company has an AI strategy in place.
Malaysian internet users remain optimistic about the impact that AI can have on society, especially on the education front. Trust in AI-generated content has also grown across the board, especially in education (+15%), financial advice (+25%), and health (+19%).