KUALA LUMPUR (April 29): DPS Resources Bhd (KL:DPS) is exploring a partnership with an affiliate of Alibaba Group Holding Limited to develop artificial general intelligence (AGI) data centre infrastructure in Melaka.
The project remains at a preliminary stage, with definitive agreements yet to be finalised. The first phase is expected to have a capacity of 150MW to 180MW, with an estimated development cost of US$7.5 million (RM29.7 million) per megawatt.
At 150MW, this implies an indicative project value of about US$1.1 billion (RM4.36 billion), said DPS in its statement on Wednesday.
Its wholly-owned unit DPS Energy Sdn Bhd (DPSE) has signed a memorandum of understanding with Hangzhou Xinfengwei Network Technology Co Ltd, an associate of Dingding (China) Information Technology Co Ltd.
Under the agreement, DPSE will provide land, power supply and supporting infrastructure, while overseeing regulatory approvals, government liaison and overall project management. It will retain ownership of the land and infrastructure assets. Xinfengwei will bring in global computing demand and potential customers and handle market development, technical operations and day-to-day management.
The collaboration marks a step towards unlocking the value of DPS’ landbank and infrastructure capabilities in Melaka amid rising global demand for high-performance computing capacity, the company said. It also allows both parties to assess commercial structures, technical requirements and potential off-take arrangements, said DPS group chairman and founder Sow Chin Suan.
Sow added that DPS is well-positioned to tap into the growing AI-driven demand for large-scale computing capacity, with the potential to generate long-term recurring income upon execution of definitive agreements.
Traditionally a furniture and property developer, DPS has been pivoting into AI data centres and high-tech industrial parks.
In April last year, it partnered with Invest Energy Ventures Sdn Bhd to develop green energy solar farms and sustainable infrastructure for its planned AI data centres in Melaka.
At Wednesday’s market close, shares of DPS rose four sen or 7.4% at 54 sen, giving it a market capitalisation of RM154.1 million.