DPS unit signs non-binding MoU with China's Hangyue for proposed 89MW Melaka data centre

PETALING JAYA (Aug 7): DPS Resources Bhd's wholly owned subsidiary Shantawood Sdn Bhd (SSB) has signed a non-binding memorandum of understanding (MoU) with China's Hangyue Intelligent Electrical Co Ltd to collaborate on digital energy infrastructure projects, including the marketing of SSB's proposed data centre facility with a capacity of up to 89 megawatts (MW) in Bukit Rambai, Melaka.

In a Bursa Malaysia filing on Friday (Aug 7), DPS said the two-year, non-binding and non-exclusive MoU establishes a long-term strategic partnership to promote Chinese investment in Malaysia and collaborate on digital energy infrastructure, data centres, industrial development and related projects. Any commercial arrangements arising from the collaboration remain subject to definitive agreements.

Indicative tenancy terms outlined

Under the proposed collaboration, Hangyue will facilitate the colocation of prospective Chinese enterprises at SSB's proposed data centre facility. Prospective tenancy arrangements envisage a minimum term of 15 years at indicative rental rates of about US$130 to US$230 per kilowatt per month, depending on tenants' specific requirements and subject to definitive agreements.

The collaboration will also explore opportunities in the electronics and semiconductor industries, digital energy and data centres, intelligent equipment and advanced manufacturing, as well as regional supply chain and corporate services.

No immediate financial impact

DPS said the MoU is not expected to have any immediate material effect on its earnings, net assets, gearing, issued share capital or substantial shareholders' shareholdings for the financial year ending March 31, 2027. However, the successful implementation of the collaboration and execution of definitive agreements may contribute positively to the group's future earnings.

Project readiness and site

According to the filing, SSB owns the land earmarked for the proposed data centre campus comprising Lots 66–73, 76, 77 and 1629 in the Bukit Rambai Industrial Area, Melaka. Hangyue is a digital energy infrastructure provider specialising in power supply, distribution, system integration and data centre colocation.

DPS said the proposed project had undergone consultations with Tenaga Nasional Bhd on electricity supply, while water-supply availability was assessed through consultations with Syarikat Air Melaka Bhd and GNL Engineering Consultancy.

The company also said SSB had received a state support letter from the Melaka Chief Minister and submitted its application, together with the relevant documents, to the Data Centre Task Force.

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