The Malaysian state-owned development company has officially entered the data center track. Selangor Industries has signed a joint venture agreement with local developer DC Union to establish a joint venture called SQDC to build a 65MW data center park in Sai Kung, south of Kuala Lumpur. The project covers an area of 5.2 hectares with a total investment of 2.5 billion ringgit, approximately 604 million US dollars.

Selangor Industrial Corporation is not an unknown entity. It is a subsidiary of PKNS, a development agency in Selangor, with the state government standing behind it. DC Union is a local data center developer in Malaysia who has been deeply involved in the local market for many years. The collaboration between state-owned enterprises and private enterprises is not uncommon in Malaysia, but it is still the first time in the data center field.

Why is Saicheng worth betting on

Sai Cheng itself is the heart of Malaysia's digital economy. Here, a large number of technology companies, regional headquarters of multinational corporations, and government digital institutions gather, and the demand for high-density computing power has been on the rise. The site is located on a 5.2 hectare plot, which is not small in scale, and the 65MW IT capacity is also among the top tier in Southeast Asia. More importantly, Saicheng is only about 30 kilometers away from the center of Kuala Lumpur, with obvious advantages in low latency, and the surrounding fiber optic network and power infrastructure are quite mature.

The overall data center investment boom in Malaysia is still ongoing. According to MIDA data, the total approved investment in data centers and cloud computing in the country has reached RM144.4 billion from 2021 to mid-2025. NEXTDC has just launched its first overseas station KL1 in Klang Valley, Selangor, and now SQDC has settled in Saicheng. The two projects are not far apart, indicating that the computing power demand in this area is rapidly being filled. Keywords: data center, data center park

The entry signal of state-owned enterprises is unusual

Selangor Industries personally stepped down, sending a clear signal that data centers are no longer just a private enterprise's business, and state-owned enterprises at the state level also have a share. This means stronger policy endorsement and more stable long-term operational guarantees for the market. For Chinese companies evaluating site selection in Malaysia, projects involving state-owned enterprises are usually more certain in terms of approval process and compliance. The new park in Sai Cheng is worth keeping an eye on.Editor/Cheng Liting