Microsoft is making a bold move to primarily utilize its own AI data center chips in the future, as revealed by Chief Technology Officer Kevin Scott. This strategic shift aims to reduce reliance on industry giants like Nvidia and AMD, which have dominated the semiconductor market for AI workloads. By focusing on in-house chip development, Microsoft is not only optimizing performance but also tailoring solutions to meet its specific needs in the rapidly evolving AI landscape.

The rapid growth of artificial intelligence (AI) is reshaping the global data center landscape, particularly in Malaysia’s Johor state, which is emerging as a significant hub for data centers. With a planned capacity of 5,800 megawatts, Johor has attracted investments from major tech companies like Google and Microsoft. However, this boom comes with substantial challenges, particularly concerning energy and water resources, as the region grapples with the sustainability of its infrastructure amidst soaring demands.