VCI Energy and DPS Energy Partner on 250MW Solar Platform for AI Data Centers in Malaysia December 22, 2025 As the global surge in artificial intelligence and cloud computing drives unprecedented demand for power, the race to secure sustainable energy sources for data centers has become a critical industry challenge. This dynamic is particularly acute in emerging digital hubs like Malaysia, where major technology investments are converging with national renewable energy goals. In a significant move to address this need, Malaysian renewable energy developer VCI Energy has entered a partnership with engineering firm DPS Energy to develop a large-scale solar power project. The two companies have signed a memorandum of understanding (MoU) to construct an infrastructure-grade renewable energy platform on approximately 600 acres of land in Lipat Kajang, Malacca. The project is designed to support up to 250 megawatts (MW) of installed solar capacity, with an estimated annual generation ranging between 350 and 450 gigawatt-hours (GWh). This substantial output is intended to be channeled through long-term power purchase agreements, with utilities, industrial users, and data center operators named as potential offtakers. VCI Global has confirmed that arrangements specifically for data centers and adjacent AI infrastructure are under active evaluation. Dato’ Victor Hoo, group executive chairman and CEO of VCI Global, emphasized the strategic nature of the venture, stating, “This is not just a solar project; it is an infrastructure platform. As AI, cloud computing, and hyperscale data centres expand across Malaysia, access to large, reliable, and renewable power is becoming mission-critical. This initiative marks a decisive step in positioning VCI Global upstream in the energy layer that powers the digital economy.” The development underscores a broader trend in Malaysia's data center market, where several local developers are rapidly scaling renewable energy capacity. For instance, in August 2025, Gamuda Energy and Gentari Renewables announced a partnership to build up to 1.5 gigawatts of solar and battery storage projects to power hyperscale facilities. The VCI-DPS project follows VCI Global's recent securing of a $30 million investment last November for its first AI data center in Kuala Lumpur, highlighting the integrated strategy of combining energy assets with computing infrastructure. This partnership signals a maturing approach to digital infrastructure development in Southeast Asia, where securing dedicated, clean power is increasingly a prerequisite for attracting large-scale AI and hyperscale investments. It positions the involved companies as key enablers in the region's digital economy while contributing to the decarbonization of a notoriously energy-intensive sector. Source: datacenterdynamics
VCI Energy and DPS Energy Partner on 250MW Solar Platform for AI Data Centers in Malaysia
