Selangor Industrial Corporation (SIC), a wholly owned subsidiary of the Selangor State Development Corporation (PKNS), has signed a Joint Venture Agreement with the Data Centre Union (DC Union) to develop a 65MW high-tech data center in Cyberjaya.
The data center project is valued at RM 2.5 billion (US$ 602.5 million) and will be developed by SIC Quantum Data Centre, a joint venture company established by SIC and DC Union. The joint venture company has appointed Vinodh Mariappa as Managing Director. Both SIC and DC Union will contribute their assets and expertise to the venture.
“Through this partnership, SIC acts as a strategic partner supporting the state’s digital infrastructure development, while DC Union’s expertise and experience will help ensure the project is executed according to international industry standards. The development of this data centre is the first project of its kind within the PKNS Group ecosystem and represents a strategic step toward strengthening the group’s participation in the rapidly growing digital industry and high-impact technology,” Haji Saharom Mohni, Chief Executive Officer of SIC Group, said in a press release.
The CEO said that the data center will serve as a supporting platform for the Selangor Smart State agenda. Government agencies, local authorities, and the private sector will be able to leverage the data center’s security and reliability for their data storage and processing needs.
Moreover, the data center will cater to Cyberjaya’s growing appetite for AI technology and digital infrastructure.
“Malaysia has an immense opportunity to emerge as a leading AI and digital infrastructure hub in Southeast Asia. This strategic collaboration is an important step in developing sovereign digital capabilities capable of supporting innovation, attracting strategic investments, and helping organizations fully leverage the potential of AI technology,” Tecsun Yeep, Chief Executive Officer of DC Union, said in a press release.
In addition to the 65MW data center, the venture will see the establishment of a Sovereign AI Command Centre and a Centre of Excellence through SIC Quantum Data Centre. This center aims to strengthen AI capabilities, data security, and digital innovation in Cyberjaya.
“Our vision extends beyond mere infrastructure development, focusing instead on building a digital ecosystem that supports talent development, technological innovation, and strategic collaboration between the public and private sectors,” Yeep added.
According to data from Mordor Intelligence, Malaysia has benefited greatly from the boom in investment into data centers and digital infrastructure. The country, and Cyberjaya in particular, has become a viable alternative to land-constrained Singapore. By January 2026, Cyberjaya was home to more than 20 data centers, attracting hyperscalers such as AWS, Microsoft Azure, and Google Cloud to the region.