Nvidia scandal threatens Southeast Asia's data center boom

The Nvidia scandal involving former CEO Jensen Huang's undisclosed relationship with a Chinese businesswoman is prompting expectations of stricter oversight on chip and data center operations in Southeast Asia, particularly in Singapore and Malaysia. The controversy has erased over $1.8 trillion from Nvidia's market value. Internal emails show Huang described meetings with Alice Huang as routine client dealings, while discussing potential legal action against the New York Times. The company's independent board members have launched an investigation, and US lawmakers are considering tighter export rules affecting Malaysia, Thailand, Indonesia, and Singapore. The region's data center industry has expanded rapidly, with Malaysia approving $94.67 billion in related investments since 2021. Malaysia is now considering laws to monitor data center operations, while Singapore previously reported that only 1 percent of Nvidia chips sold to entities there actually arrived in the country.