Malaysia’s DPS Resources Signs MOU with Alibaba Affiliate for $1.1 Billion AI Data Center in Melaka
May 4, 2026
Malaysia’s DPS Resources Signs MOU with Alibaba Affiliate for $1.1 Billion AI Data Center in Melaka
Malaysia-based DPS Resources Berhad has entered into a non-binding Memorandum of Understanding with Hangzhou Xinfengwei Network Technology Co., Ltd., an affiliate of Alibaba Group, to explore the development of a large-scale artificial general intelligence (AGI) data center project in Melaka. The agreement signals a growing push by Southeast Asian developers to tap into the surging demand for high-performance computing infrastructure driven by AI workloads.
The MOU was signed between DPS’ wholly-owned renewable energy subsidiary, DPS Energy Sdn. Bhd. (DPSE), and Hangzhou Xinfengwei, which is an associate company of Dingding (China) Information Technology Co., Ltd., itself an affiliate entity within Alibaba Group. The partnership envisions the first phase of the project delivering between 150MW and 180MW of IT capacity, with an estimated development cost of approximately $7.5 million per MW. Based on a 150MW baseline, the indicative project value stands at around $1.1 billion.
Under the terms outlined in a Bursa Malaysia filing, DPSE will be responsible for providing land, power supply, and supporting infrastructure for the proposed site, while also overseeing regulatory approvals, government liaison, compliance, and overall project management in Malaysia. DPSE will retain ownership of the land and infrastructure assets. According to DPS’ website, the proposed site covers a 100-acre plot within a larger 250-acre land bank owned by the company in the Lendu and Kelemak areas of Melaka.
Xinfengwei, for its part, will be tasked with introducing global computing demand and potential customers, as well as undertaking market development, technical operations, and day-to-day business management of the facility. The collaboration aims to address the growing global need for computing capacity in the AGI space, where demand for high-performance chips and data center real estate continues to outpace supply.
Tan Sri Dato’ Sri Dr. Sow Chin Chuan, Group Chairman and Founder of DPS Resources Berhad, said the MOU represents an important step in the company’s strategy to unlock the long-term potential of its land bank and infrastructure capabilities in Melaka. “By collaborating with Xinfengwei, we aim to explore opportunities in AGI data centre infrastructure, where demand for high-performance computing capacity continues to grow globally,” he noted. He added that while the MOU remains non-binding at this stage, it provides a meaningful foundation for both parties to evaluate commercial structures, technical requirements, and potential off-take arrangements.
Headquartered in Melaka, DPS has evolved from its origins in furniture manufacturing into a diversified conglomerate with interests spanning property development, construction, renewable energy, and AI data center-related infrastructure. The proposed project, if finalized, would mark one of the largest AI-focused data center investments in Malaysia’s southern state, further positioning the country as a regional hub for hyperscale and AI infrastructure.
Source: w.media
