PETALING JAYA: DPS Resources Bhd’s wholly owned subsidiary, Shantawood Sdn Bhd, has entered into a memorandum of understanding (MoU) with China’s Hangyue Intelligent Electrical Co Ltd to establish a long-term partnership in digital energy infrastructure, data centres, industrial development and related projects in Malaysia.

Under the proposed collaboration, Hangyue will, among others, facilitate the colocation of Chinese enterprises at Shantawood’s proposed data centre facility in Kawasan Perindustrian Bukit Rambai, Malacca, with a capacity of up to 89 megawatts (MW).

The proposed colocation arrangement is expected to be for a minimum tenancy term of 15 years at an indicative rental rate of about US$130 to US$230 (RM532 to RM941) per kilowatt (kW) per month, depending on the specific requirements of the prospective tenants and subject to the execution of definitive agreements.

Shantawood is the owner of the land proposed for the development of the data centre campus, including the property situated at Kawasan Perindustrian Bukit Rambai, Malacca. The proposed Shantawood data centre initiative underwent prior consultation with Tenaga Nasional Bhd on March 10, while SDT Engineering Sdn Bhd has confirmed sufficient power capacity of up to 89.1MW. A reliable water supply has also been validated through consultations with Syarikat Air Melaka Bhd on July 21, and by GNL Engineering Consultancy.

The company has received a state support letter from the Malacca Chief Minister dated July 30. The application form, together with the relevant documents and support letter, has been submitted to the Data Centre Task Force as part of the application process.

Hangyue is a provider of digital energy infrastructure specialising in power supply, distribution, system integration and the colocation of data centres. Under the MoU, Hangyue intends to leverage its resources, network and capabilities to connect Chinese enterprises with investment opportunities in Malaysia, facilitate project promotion and business matchmaking, provide tailored digital energy solutions and facilitate the colocation of Chinese enterprises at Shantawood’s data centre facility.

The proposed collaboration also provides a broader platform for both parties to explore cooperation in key industrial areas, including electronics and semiconductor industries, digital energy and data centres, intelligent equipment and advanced manufacturing, as well as regional supply chain and corporate services. These areas include the promotion of printed circuit board manufacturing, semiconductor packaging, modular data centres, automation and mechanical equipment, warehousing and supply chain management for Chinese enterprises.

DPS Resources group chairman and founder Tan Sri Dr Sow Chin Chuan said, “This MoU represents another important step in DPS’ ongoing strategy to strengthen our data centre and digital energy infrastructure initiatives in Malacca. Through the proposed collaboration with Hangyue, we aim to create a platform that connects Chinese enterprises with investment and colocation opportunities in Malaysia, while enhancing the value and utilisation of our assets in Bukit Rambai.”

He added, “The confirmation of power capacity, validation of water supply and support from the Malacca state government provide an encouraging foundation for us to progress discussions with potential partners and tenants. While the MoU remains non-binding at this stage, it allows both parties to explore commercial structures, technical requirements and potential long-term colocation arrangements in a disciplined manner.”

Pursuant to the MoU, Hangyue will be responsible for connecting Chinese enterprises with local investment needs, facilitating project promotion and business matchmaking, providing tailored digital energy solutions and facilitating colocation opportunities at Shantawood’s data centre facility. Shantawood will supply accurate legal and operational documentation, manage park investment, infrastructure and local government coordination, and assist in site selection and project implementation.

Moving forward, DPS believes the proposed collaboration will strengthen its data centre development pipeline and support its ambition to participate in Malaysia’s growing digital infrastructure ecosystem. The group will remain focused on disciplined execution, strategic partnerships and prudent capital management as it advances its data centre, digital energy infrastructure and industrial development initiatives in Malacca.