Australia's 2GW Nvidia sovereignty question - Asian Tech Roundup

Plus: Thailand suspends construction of 49 datacentres

Welcome to Computing's weekly roundup of tech news in Asia. This time we look at Nvidia's central role in Australia's datacentre plans, Thailand closing a datacentre construction legal loophole, and Chinese military plans for humanoid robots

Nvidia has signed deals with eight Australian companies to develop up to 2GW of datacentre capacity by 2027, a construction boom that would more than double the country's existing datacentre footprint.

Ongoing partnerships with NEXTDC, AirTrunk, IREN, Firmus, CDC, Megaport, ResetData and Sharon AI will see Nvidia's platform support sovereign AI services, advanced research and enterprise workloads, according to the companies involved.

However, the plans highlight a growing policy dilemma facing governments worldwide. While Australia's stated goal is "sovereign AI", much of the technology stack will be controlled by US vendors, particularly Nvidia. Nvidia will not only supply the AI chips but also the networking, software and reference architectures, leading critics to wonder where the independence part comes in.

The scale of the proposed buildout is also likely to intensify debate over energy consumption and grid capacity. Australian politicians have spent recent months arguing over whether new datacentres should be required to fund additional renewable generation to offset their power demand. There are also questions as to how quickly gigawatt-scale facilities will be able to secure grid connections given that power networks are already under strain.

For Nvidia, the project represents another step in its strategy of remaining central to the AI boom, with a pitch of helping nations develop domestic AI ecosystems.

For Australia, the challenge may be proving that sovereign AI and policy independence can be achieved when the infrastructure itself is heavily dependent on a single foreign supplier, particularly as it butts heads with the US administration over plans to control social media.

Australia

• Nvidia has partnered with eight Australian firms—including Firmus, Sharon AI, IREN, Megaport, ResetData, CDC, NEXTDC, and AirTrunk—to build up to 2GW of AI compute capacity by 2027, more than doubling the country's current data centre footprint. The initiative leverages Nvidia's DSX platform and is expected to require up to $100 billion in investment. Source
• Australia is considering legislation that would require social media platforms to allow users to turn off algorithm-driven content feeds, as part of a broader digital duty of care initiative. Source
• Australian data centre operator NEXTDC is raising $795 million through convertible notes to expand its AI infrastructure, marking its third fundraising in just over four months. The funds will support local data centre growth amid rising AI-driven demand and increasing challenges with power and water access. Source

China

• Tencent-backed AI chipmaker Enflame surged 188% on its Shanghai debut after raising $912 million in its IPO. Source
• China is accelerating research into humanoid robots for military use, with the People’s Liberation Army testing these machines for potential deployment alongside troops in future conflicts. Source
• Huawei has unveiled a new chip that is entirely free of US technology, marking a significant step in China's efforts to develop a self-reliant semiconductor industry. Source
• China's graduate job market is being disrupted by artificial intelligence, with new AI tools and automation changing the types of roles available and the skills required for recent university leavers. Source
• The White House has issued an executive order to block Chinese-made bulk power equipment from the US grid, citing national security risks and concerns over vulnerabilities in critical infrastructure. Source
• China's Ministry of Commerce has launched an anti-dumping investigation into Japanese imports of dichlorosilane, a chemical used in semiconductor manufacturing, after domestic producers reported a 31% price drop in Japanese DCS imports from 2022 to 2024. Source
• DeepSeek has released its latest V4.1 Flash model, with claims of superior performance while reducing inference costs and boosting speeds. Source
• DeepSeek has engaged CITIC Securities to prepare for an IPO on Shanghai’s STAR Market, aiming to raise capital for infrastructure and talent as competition intensifies among Chinese and US AI firms. The company was valued at $75 billion in a recent funding round, with major investments from its founder, Tencent, and CATL. Source
• The US has accused several Chinese AI firms including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI, of large-scale theft of American AI technology. Source
• But China’s foreign ministry has rejected the US intelligence advisory, calling the claims “unfounded” and asserting that China’s AI is built on self-reliance. Source
• Chinese tech giants are hiring underemployed professionals such as lawyers, architects, and engineers as specialised AI trainers to build high-quality datasets, with many taking on gig work to supplement incomes amid a tough job market. Source
• Huawei’s new Kirin 9050 Pro chip introduces vertical stacking technology to production silicon, marking a significant step in advanced chip design for the company. Source

India

• Bengaluru-based Pixxel has raised $100 million in Series C funding co-led by Temasek and Seraphim, marking the largest investment for an Indian space technology company. The capital will support expansion into advanced sensing satellites, Earth intelligence software, sovereign space systems, and high-rate satellite manufacturing. Source
• Tata Consultancy Services (TCS) is launching a $7.4 billion AI data centre campus in Hyderabad through its HyperVault subsidiary, with a capacity of up to 1GW. Source
• India’s Serious Fraud Investigation Office has recommended a detailed probe into Xiaomi’s local business, focusing on fund movements, compliance with foreign investment rules for Chinese companies, and possible control over e-commerce sellers. Xiaomi, which has faced asset freezes and a shrinking market share, says it has not been notified of any investigation. Source
• Google has agreed to purchase 1 million carbon credits from Indian startup Mitti Labs in a four-year deal, supporting methane reduction in rice farming across Karnataka, Andhra Pradesh, and Telangana. The project, the largest of its kind for rice-methane credits, will pay farmers to adopt water-saving practices and is expected to reach 100,000 hectares at peak delivery. Source
• Instagram suspended the accounts of three independent journalists after they reported on child deaths among the Adivasi community in Balaghat, Madhya Pradesh; the accounts were later restored, but the Press Club of India condemned the suspensions. Source

Japan

• Microsoft has embedded a cybercrime unit within Japan’s police network ahead of the country’s new cyber law coming into effect in October. Source
• Japan and the United States are advancing a $550 billion investment pact, with the next tranche expected to focus heavily on AI and semiconductor projects. The agreement allows the US President to direct funding, with Japan providing loans and guarantees, and includes a mechanism for tariff relief and profit sharing. Source

Malaysia

• ScopeTel and Orange Business have signed a Memorandum of Understanding to jointly develop satellite and managed connectivity services across Malaysia and selected Asia-Pacific markets. The partnership will focus on multi-orbit satellite communications for remote and mission-critical operations. Source
• OpenAI has signed a multi-year deal with Nvidia-backed Firmus to secure dedicated AI compute capacity from two Malaysian data centres, making OpenAI an anchor customer and pushing Firmus’ contracted capacity above 900MW. Source
• Lenovo sees AI PCs and channel partners as key to accelerating MSME transformation in Malaysia, with 98% of Southeast Asian organisations planning to increase AI investments. Source

Philippines

• A vulnerability in ownCloud software led to a breach of nuclear data in the Philippines, raising concerns about the security of critical infrastructure. Source
• The Philippines has unveiled a $34.4 billion AI Infrastructure Masterplan aiming to expand national datacentre capacity from 50MW to 1.5GW by 2033 and boost GDP by up to 12% over seven years. Source

South Korea

• South Korea's prime minister stated that the country's first US investment project could serve as a model for future bilateral cooperation. Source
• Samsung Electronics and ASML are expanding their partnership to introduce High NA EUV lithography for next-generation DRAM manufacturing by 2028, marking an industry first. Samsung will also join an initiative to develop 12-inch photomask technology, aiming to improve productivity and reduce manufacturing costs in advanced semiconductor production. Source
• South Korea is targeting a massive expansion in spending to 821 trillion won ($596.92 billion) in 2027 (12.8% up on 2026), driven by booming semiconductor sales and thus tax receipts. Source

Taiwan

• Micron's Taiwan workers are set to receive rewards worth up to 68 months' pay, following union negotiations that compared their bonus policies to those at Samsung and SK Hynix amid the AI-driven semiconductor boom. Source
• Dutch lithography leader ASML and chipmaker TSMC have launched an industry-wide initiative to transition to 12-inch photomasks for high-NA EUV lithography. The pilot line is planned for 2031, with production readiness targeted for 2033. Source
• TSMC is building 25 new chip and packaging plants in Taiwan this year to keep pace with surging demand for AI-related semiconductors, as supply struggles to meet global demand. Source

Elsewhere in Asia

• Singapore: Singapore is strengthening digital ties with Thailand, focusing on cross-border technology collaboration and regulatory alignment. Source
• Thailand: Thailand has suspended construction on 49 datacentres after a regulatory loophole allowed permits to be issued as warehouses, prompting new rules and oversight for the sector. Source
• Vietnam: An exposed Advance Passenger Information System database linked to Vietnam revealed 220 million passenger and crew records, including names, passport numbers, and flight details. Source