Magna AI signs $700 million Malaysia AI data centre project
20MW Sarawak data centre anchors national AI transformation
#Malaysia #Saudi #datacentres – Global integrated-value-chain sovereign AI transformation leader Magna AI has signed a Memorandum of Understanding with Malaysia-based technology solutions provider Zchwantech Group for a strategic AI infrastructure collaboration with a total investment of approximately $700 million. The agreement outlines plans to design and develop sovereign-ready AI infrastructure, advanced AI applications, and national-scale AI security capabilities for Malaysia, anchored by development of a 20MW AI data centre in Sarawak.
SO WHAT? – The partnership aims to address Malaysia’s pressing need for secure, national-scale AI infrastructure. The nation’s AI ecosystem is already expanding rapidly, with 2.4 million businesses already adopting AI and 35% year-on-year growth in AI adoption during 2025. The collaboration will establish a sovereign AI factory framework integrating data pipelines, model pipelines, AI operations, and high-performance computing environments to support enterprise and national-level AI workloads whilst co-developing AI applications tailored to Malaysia's priority industries.
Here are some key points about this announcement:
Global AI transformation factory Magna AI has signed an MoU with Malaysia-based technology solutions provider Zchwantech Group for a strategic collaboration to create AI infrastructure and services with a total investment of approximately $700 million.
The MoU establishes a framework to develop 20MW of AI data centres designed to provide high-performance computing power required for Malaysia’s digital transformation, with the Sarawak facility representing a significant investment in sovereign AI infrastructure capabilities at national scale.
The collaboration will leverage Zchwantech Group’s expertise in cybersecurity and digital integration with Magna AI’s end-to-end AI transformation capabilities including model integrity and data governance, aiming to set a benchmark for secure digital adoption and risk mitigation across Malaysia.
The partnership will co-develop AI applications incorporating predictive intelligence, automation, and domain-specific AI models tailored to Malaysia’s priority industries to accelerate operational efficiency and digital competitiveness across enterprise and government sectors.
Malaysia’s AI ecosystem recorded 35% year-on-year growth in AI adoption during 2025, with 2.4 million businesses already adopting AI technologies, whilst AI-enabled cyber threats are rising sharply with nearly half of organisations reporting incidents involving AI-powered attacks.
Taiwan-based WiAdvance Technology, a subsidiary of Wistron Corporation providing cloud-based services and vertical solutions, is collaborating on technical and architectural alignment and stakeholder coordination for the Sarawak AI data centre opportunity alongside initiatives under the Malaysia Sovereign AI Factory programme.
[Written and edited with the assistance of AI]