Aolani, a Singapore-founded neocloud artificial intelligence (AI) firm, announced Monday it has signed Letters of Intent to take up 500 megawatt (MW) of AI data center capacity in Malaysia.

The capacity is targeted to come online starting in the second half of 2027 across multiple sites in Malaysia, the firm said in a statement.

Designed to Tier III standards, the sites will house purpose-built AI data centres supporting Aolani’s expanding portfolio of AI factories and GPU deployment.

Under the arrangement, Aolani will provide the AI infrastructure, GPU deployment, and operating requirements across the facilities upon completion.

With this commitment, Aolani is projecting to commit up to 580MW of capacity in Malaysia by 2027, up from approximately 80MW already committed in 2026.

The firm said Malaysia has emerged as a key destination for AI infrastructure investment in the region, driven by competitive power costs, available land, and growing governmental and business support for digital infrastructure development.

The expanded capacity will serve demand from global hyperscalers and AI-native companies while also making AI compute accessible locally.

Aolani is also exploring initiatives and partnerships to provide high-performance compute capacity to Malaysian sovereign AI programs, lcoal enterprises, researchers and start-ups.

“Malaysia is a vital strategic anchor for Aolani and a proven home market where we continue to grow our footprint as a hyperlocal neocloud. Malaysia is already firmly established as a global hub for AI infrastructure, but the net stage is using local compute to catalyze development of the local AI ecosystem and the broader economy,

“We are committed to steering this effort, using this capacity expansion to work with local partners across the ecosystem to further democratize access to compute,” said Nicholas Chia, Chief Executive Officer at Aolani.

The letter of intent is non-binding and remains subject to the negotiation and execution of definitive agreements between the parties.

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