Malaysian State-Backed Firm and Local Operator to Build 65MW Data Center in Cyberjaya
June 25, 2026
Malaysian State-Backed Firm and Local Operator to Build 65MW Data Center in Cyberjaya
A state-backed development company in Malaysia has entered into a joint venture agreement with a local data center developer to construct a 65MW data center campus in Cyberjaya, a planned city south of Kuala Lumpur. The collaboration marks a significant step in Malaysia’s efforts to expand its digital infrastructure, with the state of Selangor playing an active role in the country’s growing data center market.
The agreement was signed between the Selangor Industrial Corporation (SIC), a subsidiary of the Selangor state development agency PKNS, and DC Union, a domestic data center operator. The joint venture, named SQDC, will develop the facility on a 5.2-hectare site with an investment of RM2.5 billion, equivalent to approximately $604 million. According to a LinkedIn post from SIC and reports from local media, the project is expected to feature immersion cooling technology, a method that submerges IT equipment in dielectric fluid to enhance energy efficiency and thermal management.
Specific details regarding the project’s construction timeline and exact location within Cyberjaya have not been disclosed. Cyberjaya, located in the state of Selangor on the west coast of Peninsular Malaysia, is a key hub for technology and innovation, and the state itself surrounds the capital city of Kuala Lumpur. The involvement of a state-backed entity like PKNS underscores the strategic importance of data center development to Selangor’s economic growth and digital transformation agenda.
Industry observers note that the partnership between a state development agency and a domestic operator highlights the increasing role of public-private collaboration in Southeast Asia’s data center expansion. As demand for cloud services and AI workloads surges across the region, Malaysia is positioning itself as a competitive destination for hyperscale and enterprise data center investments. The use of immersion cooling in this project could also set a precedent for more sustainable cooling practices in the country, aligning with broader environmental goals.
Source: datacenterdynamics
