KUALA LUMPUR (Dec 11): Mara Inc and ACE Market-listed PRIVASIA Technology Bhd (KL:PRIVA), a business process outsourcing company, are teaming up to develop and operate a data centre in Bagan Datuk, Perak.

Mara Inc, the strategic investment arm of Mara Corp, inked a memorandum of agreement (MOA) with PRIVASIA’s wholly owned PRIVABYTES Sdn Bhd for the project on Wednesday. PRIVASIA is also involved in information and communications technology.

The project’s first phase, comprising 10MW, is expected to be completed by October 2026, according to the groups.

Under the preliminary agreement, Mara and PRIVASIA are to form a special purpose vehicle for the project, which is to lease a 49.9-acre land in Bagan Datuk from Felcra.  Mara Corp, and in turn Mara Inc, is under the purview of the Ministry of Rural and Regional Development.

Deputy Prime Minister and Minister of Rural and Regional Development Datuk Seri Dr Ahmad Zahid Hamidi, who witnessed the signing of the MOA, said the project will enable cost efficiency, secure data security and optimisation of government resources.

"As Member of Parliament for Bagan Datuk, the selection of this area is not only because of its strategic position to accommodate the needs of a data centre but also able to trigger economic development in other nearby rural areas, particularly in the state of Perak,” Zahid said at the signing ceremony.

Due to the project still being at a preliminary stage, details are scant. Mara Inc and PRIVASIA also entered into a non-disclosure agreement in relation to the project. Following the MOA, Mara Inc and PRIVASIA are to conduct due diligence and feasibility studies with a joint venture agreement to come later.

Shares in PRIVASIA ended half a sen or 3.7% higher at 14 sen, giving the company a market capitalisation of RM90.92 million.

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By Izzul Ikram / theedgemalaysia.com
11 Dec 2024