KUALA LUMPUR (Sept 5): Systech Bhd (KL:SYSTECH) has teamed up with Pinetop Technology Venture Sdn Bhd to develop and operate data centres.

In a bourse filing on Thursday, the information technology services firm announced that its wholly-owned subsidiary, SysAIU Sdn Bhd, has entered into a collaboration agreement with Pinetop Technology Venture Sdn Bhd to establish, develop and operate data centres and other related business activities.

The agreement, which spans two years, will renew annually unless either party provides written notice to terminate it before the term expires, according to Systech.

The agreement does not have a fixed value, as terms depend on the revenue generated from the project.

The announcement did not elaborate on details about the data centre project.

Under the agreement, SysAIU is responsible for sourcing all necessary equipment and infrastructure for the project, including graphics processing units (GPUs), servers, storage systems and cooling equipment.

SysAIU will oversee the installation, configuration, maintenance and upgrading of this infrastructure to ensure optimal performance and compliance with industry standards.

Additionally, SysAIU will provide technical support, training and resources to ensure efficient use by data centre staff.

On Pinetop's part, it will provide technical support and expertise for the AI data centre’s operation, focusing on the maintenance and servicing of high-performance GPU infrastructure and servers.

Pinetop will also develop and supply the required applications and software, including AI applications, computer vision and image recognition, to enhance the data centre’s capabilities.

This is Systech's second data centre partnership. On June 24, Systech announced it had partnered with Eh Integrated Systems Sdn Bhd (EISSB) to develop and operate data centres under a two-year agreement with no fixed value.

Systech reported a net loss of RM1.5 million for the first quarter ended June 30, 2024 (1QFY2025), compared to a net profit of RM580,000 a year earlier, due to higher administrative and operational expenses.

This is despite revenue more than doubling to RM10.2 million from RM4.87 million, mainly driven by its corporate solutions and eLogistics segments.

Shares in Systech closed half a sen or 1.54% higher at 33 sen, giving it a market capitalisation of RM209.46 million.