Magna AI has announced a major AI infrastructure investment in Malaysia through a memorandum of understanding with Malaysian technology firm Zchwantech Group. The agreement is valued at approximately $700 million. The partnership aims to expand national-level AI infrastructure and support Malaysia’s digital transformation strategy.
The AI infrastructure investment in Malaysia focuses on building sovereign-ready systems capable of supporting large-scale enterprise and government workloads. The project emphasizes local data control, secure operations, and long-term capacity development.
AI Infrastructure Investment in Malaysia Targets Sarawak Data Center
A 20-megawatt AI data center in Sarawak is the central project under the agreement. The facility is intended to deliver high-performance computing resources required for advanced AI workloads. The data center will support training, deployment, and operation of AI models within Malaysia.
The project includes infrastructure designed for energy efficiency and scalability. It is structured to meet the growing demand for AI compute capacity across multiple sectors.
Sovereign AI Framework Under AI Infrastructure Investment in Malaysia
The AI infrastructure investment in Malaysia includes plans to establish a sovereign AI factory framework. This framework integrates data pipelines, model development pipelines, AI operations, and secure computing environments. These components are intended to function together as a unified national AI platform.
The framework is designed to enable domestic organizations to deploy AI systems while maintaining control over sensitive data. Shared infrastructure will support both public and private sector use cases.
Industry Collaboration and Security Focus
Zchwantech Group will contribute expertise in cybersecurity, digital integration, and system deployment. Magna AI will provide end-to-end AI transformation capabilities, including model integrity and governance processes.
WiAdvance Technology, a subsidiary of Wistron Corporation, will support technical planning and stakeholder coordination for the Sarawak facility.
The report notes that AI adoption in Malaysia grew by 35% year-on-year in 2025, with approximately 2.4 million businesses using AI tools. It also highlights rising AI-driven cyber threats, with nearly half of organizations reporting incidents involving AI-enabled attacks.
The agreement is positioned to strengthen Malaysia’s secure AI infrastructure and national computing capacity.
Source: https://www.middleeastainews.com/p/magna-ai-signs-700-million-malaysia