TLDR: Telenor ASA, a major shareholder in CelcomDigi Bhd, is considering establishing a sovereign and sustainable ‘AI factory’ in Malaysia. This data center would provide local compute power, leveraging Telenor’s experience from a similar facility in Norway. The initiative aims to bolster Malaysia’s cloud and data center strategy, support the development of personal AI agents for over 20 million users, and ensure ethical and governed AI deployment, as highlighted in the Telenor Asia Digital Lives Decoded 2025 report.
KUALA LUMPUR – Telenor ASA, a significant stakeholder in CelcomDigi Bhd, is actively exploring the establishment of a sovereign and sustainable ‘artificial intelligence factory’ in Malaysia. This proposed facility, essentially a data center, is designed to deliver crucial local compute power, drawing upon Telenor’s successful experience with its first AI factory in Norway, which provides compute-as-a-service within a secure and sustainable framework.
Dr. Ieva Martinkenaite, Telenor Group’s senior vice-president and head of AI, emphasized the strategic importance of this venture. Speaking at the release of the ‘Telenor Asia Digital Lives Decoded 2025: Building Trust in Malaysia’s AI Future Report’, she stated, ‘We see an opportunity to work with the Malaysian government on secure, scalable AI infrastructure that benefits the country.’ Dr. Martinkenaite further highlighted the evolving role of telecommunication companies, noting, ‘Telcos are trusted partners in AI ecosystems, we are not just connectivity providers anymore, but technology players.’ She added that the AI factory could significantly support Malaysia’s cloud and data center strategy, promising potential economic returns. Telenor is also prepared to ‘contribute perspectives on training and responsible AI as a service,’ viewing this as a clear opportunity for monetization.
Kugan Thirunavakasaru, CelcomDigi’s chief innovation officer, underscored the critical need for local sovereign data to integrate AI into services for the company’s extensive user base of over 20 million. He projected a future where ‘In two to three years, every individual could have a personal AI agent, but that requires massive compute power.’ Thirunavakasaru affirmed that ‘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 acknowledged the challenges of scaling to meet such demand without adequate capability and compute power, concluding that ‘Pooling resources with Telenor gives us the scalability to meet that demand while ensuring ethics and governance remain in place.’
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The ‘Telenor Asia Digital Lives Decoded 2025’ report, now in its fourth year, surveyed 1,000 Malaysian internet users to gauge AI’s impact on digital lives. The findings indicate a significant behavioral shift, with 89% of Malaysian internet users currently utilizing AI, a notable increase from 75% in 2024. The report also highlighted a more than doubling of internet users employing AI for financial purposes or health and fitness. Remarkably, a quarter of the surveyed Malaysian internet users intentionally use AI tools multiple times daily.
