Malaysian Landowner Teams with Alibaba Affiliate for $1.1 Billion AGI Data Center Push in Melaka

DPS Resources Berhad's unit has signed a non-binding memorandum of understanding with China's Hangzhou Xinfengwei to explore massive AGI data center projects.

The deal targets infrastructure worth about $1.1 billion in Melaka, Malaysia, focusing on a first phase of 150 to 180 megawatts.

Project Breakdown

DPS Energy Sdn Bhd will supply land, power, and infrastructure while keeping ownership, as Xinfengwei manages operations and brings global customers.

Xinfengwei links to Alibaba Group through its Dingding associate, adding tech expertise to the venture.

DPS's Big Pivot

Once focused on furniture and property, DPS Resources now taps its Melaka landbank for high-tech AI infrastructure amid booming demand.

This move aims to create steady income and boost Melaka as a digital hub in Southeast Asia.

Malaysia's stable energy grid and incentives make it attractive for data centers, outpacing neighbors like Indonesia in power reliability.

Why It Matters for Malaysians

The project could generate thousands of jobs in construction, tech ops, and maintenance, lifting local economies.

Yet challenges loom, including securing enough green power for energy-hungry AGI servers amid global shortages.

As the AGI race heats up, such deals signal China's tech giants expanding abroad to dodge domestic compute limits.

If definitive agreements follow, this could spark a wave of AI investments, positioning Malaysia as a key player in tomorrow's intelligent economy.