Malaysia is pushing hard into regional digital infrastructure with a RM569 million data centre development in Bagan Datuk, Perak, led by PRIVASIA Technology Bhd. The Bagan Datuk data center project has formalized an engineering, procurement, construction and commissioning (EPCC) agreement with Inspur Cloud and has since commenced its construction phase.

With construction now underway and Phase 1 targeted for completion by end-2027, the development reflects Malaysia’s goal to decentralize digital infrastructure and see growth of new tech corridors. Additionally, Bagan Datuk facility by PRIVASIA, and others such as KUL2 hyperscale data centre campus in Selangor are also marking the shift away from saturated data centre clusters such as Klang Valley and Johor.

PRIVASIA’s decision for a 10 MW data centre in Bagan Datuk and Malaysia’s digital economy agenda

The decision by PRIVASIA to locate the facility in Bagan Datuk is a deliberate move to address land, power, and resource constraints in traditional data centre hubs. As demand for cloud computing, AI processing, and secure data storage continues to increase across Southeast Asia, secondary locations are also being prioritized for scalability and cost efficiency.

Bagan Datuk’s emergence as a digital infrastructure node also aligns with Malaysia’s broader digital economy agenda. The Southeast Asia country aims to distribute economic benefits beyond urban centres. Malaysia plans to achieve this by placing high-value infrastructure in less-developed regions. Thus, project such as PRIVASIA’s Bagan Datuk 10.06 MW data center are expected to catalyze local employment, connectivity improvements, and ancillary service industries.

Project cost

The project has a total investment value of RM569 million ($144 million). This cost covers full EPCC scope including civil works, ICT systems, and high-availability telecommunications infrastructure.

Phase 1 will deliver 10.06 MW of IT load capacity. Scalability is also planned under a future Phase 2 depending on market demand and technological evolution. The facility is also expected to support a mix of co-location, Infrastructure-as-a-Service (IaaS), and Software-as-a-Service (SaaS) offerings.

Additionally, PRIVASIA will retain operational control of the data centre. This is while discussions with potential off-takers and tenants are ongoing – pointing toward a commercialization plan to combine anchor clients with multi-tenant capacity.

Bagan Datuk Data Centre project fact sheet

Location: Bagan Datuk in Perak, Malaysia

Total Investment: RM569 million

Phase 1 Capacity: 10.06 MW

Development Timeline: 2 years. Pre-construction is already complete

Phase 1 Construction Completion: End of 2027

Operational Start: Late 2027 – Early 2028

Services: Co-location, IaaS, SaaS

Delivery Model: EPCC

Project developer and stakeholders

Developer/Operator: PRIVASIA Technology Bhd

Project Subsidiary: Silverstreams

Technology and Cloud Partner: Inspur Cloud Information Technology Co Ltd

Government Stakeholder: Malaysia Ministry of Digital

Public Sector Representative: Wilson Ugak Kumbong

PRIVASIA Technology Bhd

For over 20 years, PRIVASIA Technology Berhad has been a leading and trusted IT Managed Services Provider (MSP) in Malaysia, specialising in IT outsourcing and IT Managed Services for high-growth organisations and Malaysian GLCs.