KUALA LUMPUR (Aug 7): DPS Resources Bhd (KL:DPS) has partnered Hangyue Intelligent Electrical Co Ltd to facilitate the colocation of Chinese companies at the former's proposed 89MW data centre in Melaka.

A memorandum of understanding was inked between DPS’ wholly owned unit, Shantawood Sdn Bhd, and Hangyue Intelligent Electrical Co Ltd, for a long-term strategic partnership in digital energy infrastructure, data centres, industrial development and related projects in Malaysia.

One of the proposed initiatives under the proposed collaboration is that Hangyue will facilitate the colocation of Chinese enterprises at Shantawood’s proposed data centre facility in Kawasan Perindustrian Bukit Rambai, with a capacity of up to 89 megawatts (MW).

“The proposed colocation arrangement is expected to be for a minimum tenancy term of 15 years at an indicative rental rate of approximately US$130 to US$230 (RM940.08) per kilowatt per month, depending on the specific requirements of the prospective tenants and subject to the execution of definitive agreements,” it said in a statement on Friday.

Under the MOU, Hangyue will also leverage its resources, network and capabilities to connect Chinese enterprises with investment opportunities in Malaysia, facilitate project promotion and business matchmaking, and provide tailored digital energy solutions.

Meanwhile, Shantawood, the landowner of the site for the proposed data centre facility, will supply legal and operational documentation, manage park investment, infrastructure and local government coordination, and assist in site selection and project implementation.

“The proposed collaboration also provides a broader platform for both parties to explore cooperation in key industrial areas, including electronics and semiconductor industries, digital energy and data centres, intelligent equipment and advanced manufacturing, as well as regional supply chain and corporate services,” it added.

The proposed data centre project has undergone consultation with Tenaga Nasional Bhd (KL:TENAGA), while SDT Engineering Sdn Bhd has confirmed sufficient power capacity of up to 89.1MW.

A reliable water supply has also been validated via consultations with Syarikat Air Melaka Bhd and by GNL Engineering Consultancy, it added.

DPS noted it has also received a state support letter from the Chief Minister of Melaka.

“The application form, together with the relevant documents and support letter, has been submitted to the Data Centre Task Force as part of the application process,” it noted.

DPS founder and chairman Tan Sri Dr Sow Chin Chuan said the MOU represents another important step in the company’s ongoing strategy to strengthen its data centre and digital energy infrastructure initiative in Melaka.

“Through the proposed collaboration with Hangyue, we aim to create a platform that connects Chinese enterprises with investment and colocation opportunities in Malaysia, while enhancing the value and utilisation of our assets in Bukit Rambai,” he added.

In April this year, DPS inked an MOU with Hangzhou Xinfengwei Network Technology Co Ltd, an associate of Dingding (China) Information Technology Co Ltd, to explore the development of artificial general intelligence (AGI) data centre infrastructure in Melaka.

The first phase of the project 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).

Shares of DPS ended a sen or 1.87% lower at 52.5 sen, valuing the company at RM139.67 million.