Magna AI and Zchwantech Announce USD 700M Strategic Collaboration to Power Malaysia’s Sovereign AI Future

8 FEBRUARY 2026, Riyadh, KSA: Magna AI, the global integrated‑value‑chain sovereign AI transformation leader established through a partnership between Trend Micro and Wistron in strategic collaboration with NVIDIA, today announced the signing of a Memorandum of Understanding (MoU) with Zchwantech Group, a home-grown technology solutions provider of Malaysia. The MoU outlines a strategic collaboration to design and develop sovereign-ready AI infrastructure, advanced AI applications, and national-scale AI security capabilities for Malaysia, anchored by the development of a 20MW AI Datacenter in Sarawak estimated at approximately USD 700 million.
Under the MoU, Zchwantech Group and Magna AI will collaborate on the development of a sovereign AI factory framework in Malaysia, integrating data pipelines, model pipelines, AI operations and high-performance computing environments to support enterprise and national-level AI workloads. The collaboration also includes the co-development of AI applications tailored to Malaysia’s priority industries, incorporating predictive intelligence, automation and domain-specific AI models to accelerate operational efficiency and digital competitiveness.
In addition, the partnership establishes a framework to address the increasing need for secure, national-scale AI infrastructure in Malaysia. Under the MoU, the parties will collaborate on developing dedicated AI data centres designed to provide the high-performance computing power required for the nation’s digital transformation.
Yang Mulia Tengku Dato’ Setia Putra Al-Haj bin Almarhum Tengku Azman Shah Al-Haj, Chairman of Zchwantech Cybersecurity Sdn. Bhd., said the partnership reflects a strategic response to evolving cyber-risk dynamics.
“As digital transformation accelerates, traditional security approaches alone are no longer sufficient. By uniting cybersecurity with advanced AI, this collaboration equips organisations with proactive, adaptive solutions that protect critical systems while enabling innovation,” he said.
The collaboration leverages Zchwantech Group’s deep expertise in cybersecurity and digital integration with Magna AI’s end-to-end AI transformation capabilities, such as model integrity and data governance, that sets a benchmark for secure digital adoption and risk mitigation.
Chan Chau Loong, Executive Director of Zchwantech Sdn. Bhd., said “Embedding security into digital and AI strategies is not optional — it is essential. Through this partnership, we are strengthening our ability to deliver solutions that are resilient, scalable, and aligned with real operational needs.”
Dr. Moataz BinAli, Chief Executive Officer of Magna AI, added “Malaysia is at an inflection point, with the opportunity to lead the region in sovereign AI capabilities. Our collaboration with Zchwantech brings together deep AI engineering, cybersecurity expertise, and a unified vision for nationalscale transformation.”
Dr. Michael Hsia, Chief Executive Officer of WiAdvance Technology, added “As a trusted AI service provider, WiAdvance supports this strategic collaboration and welcomes its role in advancing trustworthy AI applications for Malaysia’s digital economy.”
The MOU follows extensive joint work between Magna AI, Zchwantech, with collaboration from WiAdvance to define the framework that balances innovation, sovereignty, and security. The parties are in collaboration for the technical and architectural alignment and relevant stakeholder coordination for the Sarawak AI Data Center opportunity, in parallel with advancing 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 and a 35 % year-on-year growth in AI adoption in 2025. At the same time, AI-enabled cyber threats are rising sharply, with nearly half of organisations reporting incidents involving AI-powered attacks. This environment emphasizes the urgency for solutions that deliver both innovation and security.
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 digital priorities to build a trusted, resilient digital economy.
This strategic collaboration marks a decisive step toward shaping a trusted digital ecosystem that balances innovation with security, helping organisations transform responsibly and sustainably, and translating advanced technologies into practical outcomes for enterprises and public-sector stakeholders.