Aolani inks Malaysia deal for 500MW AI capacity; projects 580MW commitment by 2027

Rendering of Aolani's AI factory in Southeast Asia. Image courtesy: Aolani
October 20, 2026 at 4:33 PM GMT+8

Singapore-headquartered neocloud Aolani yesterday announced it has signed a Letter of Intent to take up 500 megawatt (MW) of AI data center capacity in Malaysia, with projected commitment of up to 580MW by 2027. This is up from approximately 80MW already committed in 2026, the firm said in a statement.

The capacity is targeted to come online starting in 2H 2027 across multiple sites in Malaysia. Under the arrangement, Aolani will, upon completion, supply the AI infrastructure, GPU deployment, and operating requirements. The sites will house purpose-built AI data centers to support the firm’s expansion as it meets demand from global hyperscalers and AI-native companies while also making AI compute accessible locally.

Aolani is also exploring initiatives and partnerships to provide high-performance compute capacity to Malaysian sovereign AI programmes, local enterprises, researchers and start-ups.

Nicholas Chia, Chief Executive Officer at Aolani, said: “Malaysia is a vital strategic anchor for Aolani and a proven home market where we continue to grow our footprint as a hyperlocal neocloud. Malaysia is already firmly established as a global hub for AI infrastructure, but the next stage is using local compute to catalyse development of the local AI ecosystem and the broader economy. We are committed to steering this effort, using this capacity expansion to work with local partners across the ecosystem to further democratise access to compute.”

The Letter of Intent is non-binding and is subject to execution of definitive agreements between the parties.