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PETALING JAYA (Aug 14): DPS Resources Bhd has signed a memorandum of understanding (MoU) with a unit of China Energy International Group Co Ltd to explore data centres and supporting energy and water infrastructure projects in Melaka.
In a Bursa Malaysia filing On Friday (Aug 14), DPS said its wholly-owned subsidiaries DPS Energy Sdn Bhd (DPSE) and Shantawood Sdn Bhd (SSB) had entered into the MoU with CEIG (M) Sdn Bhd (CEIG), a wholly-owned subsidiary of China Energy International Group Co Ltd, for the proposed collaboration.
The parties will explore the development, design, construction, promotion and marketing of data centres, renewable and green energy solutions, power generation and transmission, and water infrastructure in Melaka.
Lendu, Bukit Rambai sites
The proposed collaboration concerns two sites — Lendu and Bukit Rambai.
The Lendu site comprises about 345 acres, including about 278 acres of freehold land and 67 acres of Malay Customary Land or leasehold land earmarked for utilities use. DPS said the site has a proposed power capacity of between 500 megawatts (MW) and 1 gigawatt (GW).
Under the MoU, the parties will explore the design and construction of DPS Data Centre 1 in Lendu, Alor Gajah, together with a proposed Class F modular gas turbine power plant with an initial capacity of 500MW. The plant could be expanded to as much as 1.5GW, if required.
They will also explore a solar farm over 850 acres of DPS' joint-venture landbank to support the proposed development with green energy, alongside water infrastructure.
The second proposed site, DPS Data Centre 2 in Bukit Rambai, comprises about 20 acres of existing factory space. It has a proposed power capacity of about 89MW, with potential expansion to 400MW.
DPS said the indicative rental rate for the Bukit Rambai site is between US$130 and US$230 per kilowatt, with a proposed minimum tenancy period of 15 years, subject to prospective tenants' requirements and the execution of definitive agreements.
Parties' proposed roles
Under the MoU, DPSE and SSB will provide the relevant land, coordinate power supply and completion of park infrastructure, coordinate local regulatory and compliance approvals, and liaise with government authorities and agencies.
They will retain ownership of the land and park assets, while any profit-sharing arrangements will be subject to definitive agreements.
CEIG will leverage China Energy International Group's resources, technical expertise and global business network for the proposed power, renewable-energy and water infrastructure. It will also seek potential investors, off-takers, operators, tenants, joint-venture partners, customers and purchasers, including Chinese and international enterprises.
In a press release dated Aug 14, DPS said the proposed collaboration is intended to create an “integrated and self-sustaining data centre ecosystem” combining data centre development with gas turbine power generation, solar and renewable energy, power transmission and water supply infrastructure, as well as potential customer, investor, tenant and off-taker participation.
DPS said its data centre initiatives had previously undergone consultation with Tenaga Nasional Bhd on March 10. It added that SDT Engineering Sdn Bhd had confirmed the availability of sufficient power capacity of up to 500MW and 89.1MW for the respective project sites.
The group said a no-objection letter had been issued by Syarikat Air Melaka Bhd on Aug 7 in relation to water supply, with GNL Engineering Consultancy providing further confirmation.
DPSE and SSB also received a letter of support from the Melaka state government through the chief minister on July 30, DPS said. The relevant application forms, supporting documents and letter of support have been submitted to the Data Centre Task Force for consideration and approval.
Non-binding MoU
The MoU is non-exclusive and non-binding, and will remain in force for one year unless extended by mutual written agreement. DPS may engage other parties before any definitive agreement is executed.
DPS cautioned that there is no assurance the proposed collaboration will lead to definitive agreements or that any proposed project will be implemented.
The group 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.
Any definitive agreement or specific project arising from the proposed collaboration will be subject to board approval and any regulatory or shareholder approvals required.
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