Malaysia-based DPS Resources Berhad has last week entered into a Memorandum of Understanding with Hangzhou Xinfengwei Network Technology Co., Ltd., an affiliate of Alibaba Group Holding Limited, to explore the development of Artificial General Intelligence (AGI) data centre infrastructure projects in Melaka, Malaysia.
The MOU was signed by DPS’ wholly-owned subsidiary, DPS Energy Sdn. Bhd. which specialises in renewables and Hangzhou Xinfengwei which is an associate company of Dingding (China) Information Technology Co., Ltd., an affiliate entity within Alibaba Group which is listed on the New York Stock Exchange and Hong Kong Stock Exchange.
According to a Bursa filing last week, DPS anticipates the MOU will progress to the signing of definitive agreements which would provide for the development of the first phase of the project, comprising about 150MW to 180MW, with an estimated development cost of USD 7.5 million (RM29.70 million) per MW. Based on a 150MW capacity, this represents an indicative project value of about USD 1.1 billion (RM4.36 billion).
Under the MOU, DPSE will provide land, power supply, and supporting infrastructure for the project sites, while overseeing regulatory approvals, government liaison, compliance requirements, and overall project management in Malaysia. DPSE will retain ownership of the land and infrastructure assets.
Based on DPS’ website, the proposed site comprises a 100-acre plot out of 250 acres belonging to the company in Lendu and Kelemak.
Xinfengwei on its part is tasked with introducing global computing demand and potential customers, as well as undertaking market development, technical operations, and day-to-day business management.
Tan Sri Dato’ Sri Dr. Sow Chin Chuan, Group Chairman and Founder of DPS Resources Berhad, said, “This MoU represents an important step in DPS’ strategy to unlock the long-term potential of our landbank 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. 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 furniture manufacturing into a diversified company with business interests spanning property development, construction, furniture manufacturing and trading, property management, renewable energy and AI data centre-related infrastructure.