KUALA LUMPUR (Aug 14): Property developer and furniture maker DPS Resources Bhd (KL:DPS) is exploring a collaboration with the subsidiary of a China state-owned enterprise in the development of data centres and supporting energy and water infrastructure in Melaka.

It said a memorandum of understanding has been inked with CEIG (M) Sdn Bhd, a wholly-owned unit of China Energy International Group Co Ltd for the proposed collaboration.

The projects are being considered at DPS’ proposed sites in Lendu and Bukit Rambai. "The proposed collaboration is intended to establish an integrated and self-sustaining data centre ecosystem, bringing together data centre development, gas turbine power generation, solar and renewable energy, power transmission, water supply infrastructure and potential customer, investor, tenant and off-taker participation," DPS said in a statement.

It said the Lendu site spans about 345 acres and has a proposed power capacity of up to 1GW, while the Bukit Rambai site comprises about 20 acres of existing factory space with a proposed power capacity of about 89MW, with potential for an upgrade to 400MW.

At Lendu, the parties will also explore the development of DPS Data Centre 1 alongside a 500MW modular gas turbine power plant to provide self-generated electricity to the facility. The proposed development could also include a solar farm and supporting water infrastructure.

“By bringing together data centre development, power generation, renewable energy and water infrastructure, the proposed collaboration provides a platform for DPS to further unlock the value of our land and existing assets in Lendu and Bukit Rambai,” said DPS group chairman and founder Tan Sri Dr Sow Chin Chuan.

Under the MOU, DPS Energy and Shantawood will provide the relevant land and coordinate power supply, infrastructure works and regulatory approvals. CEIG, meanwhile, will contribute technical expertise and assist in identifying potential investors, operators, tenants and customers.

Preparatory works had already been undertaken for the projects, according to DPS, including consultations with Tenaga Nasional Bhd (KL:TENAGA), confirmation of power and water availability at the proposed sites, and a letter of support from the Melaka state government. Applications have also been submitted to the federal Data Centre Task Force that is co-chaired by the Ministry of Investment, Trade and Industry and Ministry of Digital for consideration and approval.

The proposed collaboration is subject to the execution of definitive agreements. 

DPS, which started out in wood-based manufacturing and furniture, has since diversified into property development, construction, renewable energy and data centre-related infrastructure.

Its share price closed unchanged at 53.5 sen on Friday, valuing the group at RM141 million.