Malaysia-based DPS Resources Bhd said Wednesday its wholly owned unit has signed a memorandum of understanding (MoU) with a China-based firm affiliated with Alibaba Group Holding Limited to explore the development of $1.1 billion artificial general intelligence (AGI) data center infrastructure in Melaka, Malaysia.
DPS said in a statement that DPS Energy Sdn. Bhd. (DPSE), has entered into a MoU with Hangzhou Xinfengwei Network Technology Co., Ltd. (Xinfengwei), an associate company of Dingding (China) Information Technology Co., Ltd. for the development.
The MoU represents a strategic step in DPS’ ongoing efforts to expand its presence in artificial intelligence driven infrastructure and strengthen its positioning within the high-performance computing ecosystem.
Under the proposed collaboration, both parties will explore the deployment of next generation AGI data centre facilities, computing infrastructure, and related technology investments in Malaysia.
Pursuant to the MoU, DPSE will provide land, power supply, and supporting infrastructure for the project sites, while overseeing regulatory approvals, government liaison, compliance requirements, and overall project management in Malaysia.
DPSE will retain ownership of the land and infrastructure assets.
Xinfengwei is expected to introduce global computing demand and potential customers, as well as undertake market development, technical operations, and day-to-day business management.
The collaboration is expected to provide DPS with a platform to engage an international technology partner and attract global technology players, hyperscalers, and potential off takers for its data center developments in Melaka.
The company anticipates progressing discussions towards definitive agreements for the first phase of the project, comprising approximately 150MW to 180MW, with an estimated development cost of $7.5 million per MW.
Based on a 150MW capacity, this represents an indicative project value of approximately $1.1 billion, subject to final confirmation and terms to be agreed in the definitive agreements.
“This MoU represents an important step in DPS’ strategy to unlock the long-term potential of our landbank and infrastructure capabilities in Melaka,
“By collaborating with Xinfengwei, we aim to explore opportunities in AGI data center infrastructure, where demand for high-performance computing capacity continues to grow globally,”
said Dr. Sow Chin Chuan, Group Chairman and Founder of DPS Resources Berhad.
While the MoU remains non-binding at this stage, he said it provides a meaningful foundation for both parties to evaluate commercial structures, technical requirements, and potential off-take arrangements.
“Our immediate focus is to advance discussions towards definitive agreements in a disciplined manner, ensuring that any future development is supported by sound commercial terms, regulatory compliance, and long-term value creation for DPS and its shareholders,” he added.
It is noted as artificial intelligence continues to reshape industries and drive demand for large-scale computing capacity, data center infrastructure is becoming a critical foundation of the digital economy.
As a landowner with infrastructure development capabilities in Melaka, DPS said the firm is well-positioned to unlock the value of its landbank through AGI data center developments, with the potential to establish visible, long-term recurring income streams upon successful execution of definitive agreements.
The proposed collaboration also reflects DPS’ ambition to play a role in attracting high-value technology investments into Melaka, supporting the state’s emergence as a growing hub for digital infrastructure and contributing to its broader economic development.
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