PRIVASIA TECHNOLOGY BERHAD (PRIVA)

Privasia Technology Berhad - No Longer Just an IT Company

Privasia Technology Berhad (PRIVA, 0123) is undergoing a high-stakes transformation. After 20 years operating as an IT Managed Service Provider (MSP) in Malaysia, the company is pivoting aggressively toward becoming a data centre operator. This is not incremental change - it is a fundamental business model shift that could either dramatically re-rate the stock or expose the company to serious financial strain.

Background - 20 Years in IT Services

Founded over two decades ago, Privasia built its reputation delivering IT services to corporate and government clients in Malaysia. Its core business spans three segments:

• IT Segment: IT infrastructure outsourcing, consultancy, systems integration, and procurement management. Also operates ProcureHere, a proprietary e-procurement platform.
• ICT Segment: Wireless broadband infrastructure, mobile and wireless communications, and systems development.
• SAT Segment: Satellite-based network solutions.

In FY2025, revenue surged to approximately RM209 million - a 185% increase year-on-year. However, net profit margins remained thin at 1-3%, reflecting the highly competitive nature of IT services work. Much of the revenue growth is attributable to pass-through procurement contracts rather than high-margin advisory work.

The Strategic Bet - Silverstreams Data Centre

This is where the story becomes compelling - and complex. Privasia is constructing the Silverstreams Data Centre in Bagan Datuk, Perak - a large-scale facility with 10.06MW IT load capacity (Phase 1). The Engineering, Procurement, Construction and Commissioning (EPCC) contract worth RM569 million was awarded to Inspur Communication Malaysia Sdn Bhd on 2 December 2025.

The project is housed under Silver Streams Technofarm Sdn Bhd, an indirect wholly-owned subsidiary, on land leased from FELCRA (a Malaysian government-linked agricultural body) under a 30-year lease. Target completion is end of 2027.

Government Partnership - MARA Inc

Originally structured as a joint venture with MARA Inc, Privasia pivoted in November 2025 to proceed independently. MARA Inc continues to support the project in areas including government relations, regulatory approvals, utilities and land matters, and facilitating connections with government agencies as potential offtakers. The facility is positioned as a "sovereign, government-exclusive" data centre designed for Malaysian government agencies and potentially hyperscalers.

Note: The Bursa sector classification "Telecommunications Equipment" does not accurately reflect Privasia's actual business, which centres on IT managed services and the emerging data centre operation.

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