Bagan Datuk Data Centre to Finish Construction by End of 2027, Says Malaysian Developer Privasia

Why It Matters

The centre expands Malaysia’s high‑performance computing capacity, attracting regional cloud workloads and stimulating economic growth in less‑developed areas. It also signals a shift toward diversified data‑centre locations, enhancing resilience and cost efficiency for Southeast Asian digital services.

Key Takeaways

• PRIVASIA's 10 MW Bagan Datuk data centre costs US$144 million.
• Phase 1 slated for completion by end‑2027, operational 2028.
• Project shifts Malaysia's digital infrastructure away from Klang Valley.
• Inspur Cloud partners on EPCC, enabling co‑location, IaaS, SaaS services.

Pulse Analysis

Malaysia’s digital‑economy agenda is accelerating the rollout of high‑capacity data centres beyond traditional clusters. By situating a 10.06 MW facility in Bagan Datuk, PRIVASIA taps into abundant land and power resources while supporting the nation’s goal to spread tech‑driven growth into peripheral regions. The US$144 million investment underscores confidence in Southeast Asia’s rising demand for cloud, AI and secure storage services, positioning the country as a competitive alternative to established hubs in Singapore and Hong Kong.

The partnership with China‑based Inspur Cloud brings advanced cloud‑native technologies to the EPCC contract, ensuring the Bagan Datuk site can deliver a full suite of co‑location, Infrastructure‑as‑a‑Service and Software‑as‑a‑Service offerings. This aligns with the broader trend of hyperscale operators, such as the KUL2 campus, seeking secondary locations to mitigate latency, diversify risk, and lower operational costs. As regional enterprises and multinational tenants look for resilient, cost‑effective hosting, the new centre adds valuable capacity to the ASEAN digital ecosystem.

Beyond technical capabilities, the project promises tangible economic benefits. Construction and subsequent operations are expected to generate hundreds of skilled jobs, while ancillary services—from power management to network integration—will spur local supplier ecosystems. The planned Phase 2, contingent on market uptake, could double capacity, further cementing Malaysia’s role as a strategic data‑centre corridor. For investors and cloud providers, the Bagan Datuk development offers a compelling blend of infrastructure readiness, government support, and growth potential in a rapidly digitising region.