Malaysian data center developer Privasia is developing a 10MW data center in the northwest peninsular state of Perak.

The company has entered into a RM569 million ($144m) contract with the Malaysian subsidiary of China’s Inspur Cloud Information, calling on the latter to engineer, procure, construct, and commission a data center in the town of Bagan Datuk, southern Perak.

The announcement was posted on Malaysia’s bourse.

Privasia said that phase one of the data center, called Silverstreams, is targeted for completion by the end of next year, according to a report by Bernama. This would bring the data center’s capacity up to 10MW.

Bernama also reported that the second phase of the project could see an expansion of capacity, but further announcements are still to be made.

According to Privasia’s website about the facility, the data center will total three stories and offer up to 25MW of capacity across 49 acres.

Privasia is an IT provider, telco, and consultant, and the Silverstreams project seems to be the company’s first foray into the data center space.

Inspur Group is a Chinese tech conglomerate best known for its server manufacturing business. The company was added to the US’ Entity List in March 2023, effectively preventing American businesses from working with the company.

Most of Malaysia’s data centers are clustered around the Klang Valley – which includes the country’s capital Kuala Lumpur – and the city of Johor Bahru.