DPS Resources signs non-binding MoU for 89MW Melaka data centre

PETALING JAYA (Aug 13): DPS Resources Bhd’s wholly owned subsidiary Shantawood Sdn Bhd (SSB) has signed a non-binding memorandum of understanding (MoU) with BBSB Holdings Sdn Bhd for the proposed phased lease and development of up to 89 megawatts (MW) of data centre capacity in Melaka.

The proposed collaboration may be expanded to an aggregate capacity of up to 400MW, subject to technical feasibility, regulatory requirements, infrastructure availability, commercial terms and definitive agreements, DPS said in a Bursa Malaysia filing on Wednesday (Aug 12).

BBSB is a wholly owned subsidiary of BBSB International Ltd, which is listed on the Hong Kong Stock Exchange.

DPS said SSB owns the relevant land and existing factory rights and intends to develop and convert the proposed facility into a high-specification data centre.

The target delivery schedule provides for 20MW of IT power capacity in each of 2027, 2028 and 2029, followed by 29MW in 2030.

BBSB may participate in the provision and utilisation of supporting infrastructure and related facilities for data centre operations, although the parties have yet to determine their respective roles and responsibilities.

Any lease transaction, long-term agreement or operational commitment remains conditional on, among others, sufficient power and water capacity, regulatory approvals, SSB developing and commissioning the facility to the required technical and security standards, and the negotiation and execution of definitive agreements.

DPS said SSB’s data centre initiatives underwent consultation with Tenaga Nasional Bhd on March 10. It added that SDT Engineering Sdn Bhd had confirmed sufficient power capacity of up to 500MW and 89.1MW for the respective projects.

SSB also received a no-objection letter from Syarikat Air Melaka Bhd on Aug 7 regarding water supply and a letter of support from the Melaka chief minister dated July 30. The relevant documents have been submitted to the Data Centre Task Force for consideration and approval.

Except for provisions on confidentiality, governing law, dispute resolution and general matters, the MoU is non-binding and does not oblige either party to enter into a definitive lease, commit capital or provide services. It is valid for 12 months unless superseded by definitive agreements or extended by mutual written consent, and may be terminated by either party with 30 days’ written notice.

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.

..........

Read about data, insights and solutions for an evolving market in EdgeProp print. Subscribe now for your free copy!