Malaysian underground utilities and substation engineering specialist MN Holdings Berhad is partnering China’s Shanghai DC-Science Co Ltd to develop its first high performance data center in Malaysia.

MN Holdings said in a statement on Monday that the project, has an overall estimated value of over $600 million.

MN Holdings’ wholly-owned subsidiary Mutu Nusantara Sdn Bhd and DC-Science inked a memorandum of understanding (MOU) for the data center on April 1, 2023.

The data center project is part of a series of foreign direct investments secured for Malaysia in conjunction with Prime Minister Datuk Seri Anwar Ibrahim’s maiden visit to China on March 30 to April 2, 2023.

Spanning across a 20-acre site at the Sedenak Tech Park, Johor, the high performance data center is a significant milestone for Malaysia.

It is DC-Science’s first location outside China, having set up more than 300 data centers across the home country.

Under the current planning, utilities for the project comprises a power load of 120MW with dual power supply to support the 12,000-rack facility.

Daily average water supply is expected to be about 5,000 metric tonnes (MT), while the network access infrastructure shall be made available.

Phase 1 of the project is slated to begin development this year, and to commence operations in the first half of 2024.

Loy Siong Hay, managing director of MN Holdings, said the company is proud to represent Malaysia as DC-Science’s chosen partner, to ensure a successful roll-out of the data center service provider’s maiden project.

He said the partnership is a testament to MN Holdings’ core expertise in the underground utilities construction, as well as substation engineering solutions, which spans the installation of electricity transmission cables, sewerage and drainage pipelines, as well as construction and commission of the plant

It also marks further diversification of MN Holdings’ customer base, following its success in harnessing greater participation in large scale solar (LSS) projects and other works related to data centers and the semiconductor industry here, he added.

“We are proud to take part in DC-Science’s expansion into Malaysia. This development reaffirms Malaysia’s position as an investment destination, and will be a boost for local talents supporting the booming data center industry,” he said.

He also believes that with the collaboration with DC-Science, the firm will be able to further strengthen its technical know-how on construction and engineering of a data center.

“As Malaysia sees more investments from both the local and international fronts, we are ready to offer our expertise in underground utilities infrastructure development and engineering,” he added.

This latest partnership with DC-Science will also provide a boost to MN Holdings’s future order book, which stood at MYR 325.9 million ($73.69m) as at January 20, 2023.

MN Holdings said the firm will continue to explore opportunities among local and international clients here, leveraging on its core expertise in underground utilities and substation engineering to support the nation’s growth in digitalization telecommunication.

Details on the scope of work will be finalised upon the signing of the supplementary agreement between DC-Science and MN Holdings.

MN Holdings is principally involved in the provision of infrastructure utilities services comprising underground utilities engineering services and solutions substation engineering services and solutions.

The company mainly serves customers in the power, gas, sewerage and telecommunications industries in Malaysia.

Its customers are primarily main contractors for utility projects, property developers and industries that require its services to enable the supply of power premises.

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