DPS Resources Berhad (“DPS” or the “Company”) today announced that its wholly-owned subsidiaries, DPS Energy Sdn. Bhd. (“DPSE”) and Shantawood Sdn. Bhd. (“SSB”), have entered into a Memorandum of Understanding (“MoU”) with CEIG (M) Sdn. Bhd. (“CEIG”), a wholly-owned subsidiary of China Energy International Group Co., Ltd. (“CEEC”), a wholly owned China state company and globally recognised Fortune 500 company, to explore and establish a collaboration in data centres, renewable and green energy solutions, power generation, power transmission and water infrastructure in Melaka.
Under the proposed collaboration, DPSE, SSB and CEIG will explore opportunities relating to the development, design, construction, promotion and marketing of data centres and related energy infrastructure across DPS’ proposed project sites in Melaka, namely the Lendu Project Site and Bukit Rambai Project Site.
The proposed collaboration is intended to establish an integrated and self-sustaining data centre ecosystem, bringing together data centre development, gas turbine power generation, solar and renewable energy, power transmission, water supply infrastructure and potential customer, investor, tenant and off-taker participation.
The Lendu Project Site comprises approximately 345 acres of land in Lendu, Melaka, consisting of approximately 278 acres of freehold land and 67 acres of Malay Customary Land/leasehold land for utilities use, with a proposed power capacity of up to 500MW to 1GW. The Bukit Rambai Project Site comprises approximately 20 acres of existing factory space in Bukit Rambai, Melaka, with a proposed power capacity of approximately 89MW and the potential for an upgrade to 400MW.
Pursuant to the MoU, the parties will also explore the design and build of DPS Data Centre 1 at the proposed site in Lendu, Alor Gajah, Melaka, including a Class F modular gas turbine power plant of 500MW, expandable to 1.5GW if required, to provide self-generated power supply for DPS Data Centre 1. The collaboration also includes the potential development of a solar farm across 850 acres of DPS JV landbank to generate green energy support, as well as the necessary water supply infrastructure for the data centre.
For the Bukit Rambai Project Site, the indicative rental rate ranges from USD130 to USD230 per kilowatt (“kW”), with a minimum tenancy term of fifteen (15) years, subject to the specific requirements of the prospective tenants and the execution of definitive agreements.
Tan Sri Dato’ Sri Dr. Sow Chin Chuan, Group Chairman and Founder of DPS Resources Berhad said, “This MoU with CEIG represents another important step in DPS’ efforts to build an integrated data centre and energy infrastructure ecosystem in Melaka. By bringing together data centre development, power generation, renewable energy and water infrastructure, the proposed collaboration provides a platform for DPS to further unlock the value of our land and existing assets in Lendu and Bukit Rambai.”
Under the MoU, DPSE and SSB will own and provide the relevant land, coordinate the power supply and completion of park infrastructure, coordinate local regulatory and compliance approvals, liaise with relevant governmental authorities and agencies, and retain ownership of the land and park assets, subject to the definitive agreements.
CEIG will leverage the CEEC Group’s resources, technical expertise and global business network to collaborate in the design, construction, operation and maintenance of a modular Class F gas turbine power plant, develop solar and renewable energy facilities, support water supply, treatment and filtration infrastructure, and identify potential investors, off-takers, operators, tenants, joint venture partners, customers and purchasers, including Chinese and international enterprises.
The proposed collaboration also builds on the preparatory groundwork undertaken by DPSE and SSB for their data centre initiatives in Melaka, including prior consultation with Tenaga Nasional Berhad (“TNB”), technical confirmation from SDT Engineering Sdn. Bhd. on the availability of sufficient power capacity of up to 500MW and 89.1MW for the respective project sites, validation of reliable water supply through the Surat Tiada Halangan, or No Objection Letter, issued by Syarikat Air Melaka Berhad (“SAMB”) and further confirmation by GNL Engineering Consultancy. DPSE and SSB have also received a letter of support from the State Government of Melaka through the Chief Minister of Melaka, with the relevant application forms, supporting documents and letter of support submitted to the Data Centre Task Force for consideration and approval.
Moving forward, DPS believes the proposed collaboration may enhance the value of the Group’s land and existing assets, strengthen its position in the growing data centre and energy infrastructure sectors, diversify future revenue streams and create potential opportunities for long-term recurring income, subject to the execution of definitive agreements.
