KUALA LUMPUR (April 10): Digital firm Privasia Technology Bhd (KL:PRIVA) said on Friday that the group is in the midst of finalising discussions with the offtakers for its upcoming 10 megawatt (MW) data centre in Bagan Datuk, Perak.
According to its deputy chairman Datuk Puvanesan Subenthiran, the discussions are currently ongoing with prospective offtakers both local and international clients, although no firm commitments have been secured thus far.
“As we engage with potential customers, that’s when we understand their requirements and what we need to build for Phase 1 [of the data centre project],” Puvanesan told reporters after a signing ceremony with China-based cloud computing firm Inspur Communication on Friday.
Inspur was given RM569 million contract from Privasia's unit to undertake the engineering, procurement, construction and commissioning (EPCC) of the first phase of the project. Phase 1 will be the construction of a 10.06MW facility that is slated to go live by 2027.
The contract was channelled through Silver Streams Technofarm Sdn Bhd. The firm is a subsidiary of Privabytes Sdn Bhd, which in turn is a unit of Privanet Sdn Bhd — all of which fall under the umbrella of Privasia.
Overall, the project forms part of a broader 35MW data centre project by the company in Perak. Phase 2 — which will add the remaining 25MW of capacity — will be tendered at a later stage, according to Puvanesan.
“We have always been a service provider. This is the first time we are taking on the commitment to build our own infrastructure, so we are doing it in phases,” Puvanesan said.
Unlike traditional data centre operators that primarily offer co-location services — where clients rent space and install their own servers — Privasia plans to adopt a hybrid model combining co-location with value-added digital infrastructure services.
The company intends to rely on a combination of internally generated funds, equity fundraising and bank borrowings to fund the entire project, although details remain under discussion.
As at end-December 2025, the group reported net debt of RM28.25 million, with total loans and borrowings of RM39.38 million against deposits, cash and bank balances of RM11.13 million.
Privasia initially announced the project in December 2024 as part of a joint venture (JV) with Mara Inc, involving land leased from Felcra Bhd.
The company then decided in November 2025 that it will lead and undertake all project funding, feasibility studies, design, construction, operations, and land lease arrangements with Felcra without going through the intended JV. Mara Inc, on the other hand, will support government relations, regulatory approvals, utilities, land matters, and assist in onboarding government-related offtakers.
“When you build infrastructure projects, capital requirements change. Sometimes you have to pivot... Mara Inc remains a very supportive partner, particularly in stakeholder engagement,” Puvanesan said during the press conference.
Mara Corp, and in turn Mara Inc, is under the purview of the Ministry of Rural and Regional Development.
For the land, Privasia has already secured a 30-year land lease agreement with Felcra, with an option for renewal. Lease payments start with a RM150,000 commitment fee in the first year, followed by annual rentals escalating from RM303,000 to as much as RM1.5 million, subject to periodic reviews.
Privasia shares closed unchanged at eight sen on Friday, valuing the company at RM54 million.
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