KUALA LUMPUR (Sept 4): Semiconductor company Key Asic Bhd (KL:KEYASIC) has teamed up with a Hong Kong-listed green technology group to develop a large-scale green artificial intelligence (AI) data centre in Malaysia.

The company entered into a 10-year memorandum of understanding with CT Vision (International) Holdings Ltd on Friday to collaborate on the construction of the data centre.  

CT Vision is involved in new energy technologies, including photovoltaic, wind power, natural gas and biomass, as well as energy-saving technologies for green data centres.

“The proposed project aims to integrate green energy infrastructure with advanced AI computing capabilities and is expected to generate recurring income for the group over the coming years," Key Asic said in a bourse filing.

The project targets an aggregate IT load capacity of about 300 megawatts within five years from its commercial operation date, with a design power usage effectiveness (PUE) of not more than 1.20 and at least 50% of its energy coming from green sources.

Subject to applicable laws, export controls and third-party rights restrictions, Key Asic will leverage its existing energy-efficient chip technology, chip design capabilities, power management solutions and related technical know-how to support the operation of the data centre, as well as energy-efficiency optimisation.

Key Asic said the detailed commercial and technical terms, including pricing, payment schedules, liquidated damages, force majeure thresholds and termination rights, will be set out in separate definitive agreements to be entered into by the parties.

Key Asic’s largest shareholder is executive chairman and chief executive officer Eg Kah Yee, who holds a 0.11% direct stake and a 23.28% indirect interest through Key Asic Ltd.

“This partnership represents a paradigm shift: we are not merely constructing a data centre, but building a green energy-to-AI ecosystem," Eg said in a statement on Friday.

Key Asic has been loss-making since 2019. As at end-May 2026, the company had RM7.15 million in cash and no borrowings, while accumulated losses stood at RM10.23 million.

Its current assets of RM11.36 million were slightly below its current liabilities of RM11.54 million as at end-May.

Shares of Key Asic closed down half a sen or 7.14% at 6.5 sen on Friday, giving it a market capitalisation of RM91.84 million.