The MoU signing ceremony was witnessed by Yang Berhormat Datuk Ahmad Fahmi bin Mohamed Fadzil, Minister of Communications, reflecting strong alignment with Malaysia’s national and state-level digital transformation priorities.
Magna AI has announced a USD 700 million strategic collaboration with Zchwantech Group, one of Malaysia’s leading home-grown technology and cybersecurity providers, to accelerate the nation’s sovereign AI ambitions.
Formalised through a Memorandum of Understanding (MoU), the collaboration focuses on the design and deployment of sovereign-ready AI infrastructure, advanced AI applications, and national-scale AI security frameworks, anchored by the development of a 20MW AI data centre in Sarawak, valued at approximately USD 700 million.
Magna AI was established through a partnership between Trend Micro and Wistron, in strategic collaboration with NVIDIA, bringing together deep expertise across AI engineering, cybersecurity, and high-performance computing.
Under the MoU, Magna AI and Zchwantech Group will jointly develop a Sovereign AI Factory framework for Malaysia, integrating:
- Secure data pipelines and model pipelines
- AI operations (AIOps) and governance
- High-performance computing (HPC) environments
This end-to-end AI stack is designed to support enterprise-grade and national-level AI workloads, ensuring scalability, sovereignty, and compliance.
The partnership will also co-develop AI applications tailored to Malaysia’s priority industries, embedding predictive intelligence, automation, and domain-specific AI models to boost productivity, operational efficiency, and global digital competitiveness.
Securing National-Scale AI Infrastructure
With AI adoption accelerating, the collaboration places strong emphasis on AI security and cyber resilience. The MoU establishes a framework for developing secure, sovereign AI data centres capable of delivering the compute power required for Malaysia’s digital and AI-driven transformation—while protecting critical systems from increasingly sophisticated AI-enabled cyber threats.
Yang Mulia Tengku Dato’ Setia Putra Al-Haj bin Almarhum Tengku Azman Shah Al-Haj, Chairman of Zchwantech Cybersecurity Sdn. Bhd., said the partnership is a strategic response to evolving cyber risks. “As digital transformation accelerates, traditional security approaches are no longer enough. By uniting advanced AI with cybersecurity, this collaboration enables proactive, adaptive protection while supporting innovation at scale.”
Chan Chau Loong, Executive Director of Zchwantech Sdn. Bhd., added, “Security must be embedded into every digital and AI strategy. This partnership strengthens our ability to deliver solutions that are resilient, scalable, and aligned with real operational needs.”
Positioning Malaysia as a Regional Sovereign AI Leader
Dr. Moataz BinAli, Chief Executive Officer of Magna AI, highlighted Malaysia’s strategic opportunity, “Malaysia is at a pivotal moment to lead Southeast Asia in sovereign AI. By combining deep AI engineering, cybersecurity expertise, and a shared national vision, this collaboration lays the foundation for large-scale, trusted AI transformation.”
Dr. Michael Hsia, Chief Executive Officer of WiAdvance Technology, said, “As a trusted AI service provider, WiAdvance supports this collaboration and welcomes its role in advancing trustworthy AI applications for Malaysia’s digital economy.”
The MoU follows extensive joint planning between Magna AI, Zchwantech, and WiAdvance, focused on balancing innovation, sovereignty, and security. The parties are currently aligned on technical architecture and stakeholder coordination for the Sarawak AI Data Centre, alongside initiatives under the Malaysia Sovereign AI Factory program.
Malaysia’s digital economy and AI ecosystem are expanding rapidly, with:
- 2.4 million businesses already adopting AI
- 35% year-on-year AI adoption growth in 2025
- Nearly 50% of organisations reporting AI-enabled cyber incidents
These trends underscore the urgency for secure, sovereign AI infrastructure that delivers both innovation and protection.
This strategic collaboration marks a major step toward building a trusted, resilient, and sovereign AI ecosystem—enabling responsible innovation, strengthening national security, and translating advanced AI technologies into real-world outcomes for enterprises and the public sector.
