Malaysian real estate firm DPS Resources is moving forward with its plans to start developing data centers in Melaka (aka Malacca).

In stock exchange announcements, DPS has provided more details about its move into developing data centers.

Via its wholly owned subsidiary, Shantawood Sdn. Bhd. (SSB), the company is planning an 89MW data center on land it owns in Kawasan Perindustrian Bukit Rambai, an industrial park outside the city of Melaka, in Melaka state.

The first 20MW is due to go live in 2027, with a further 69MW going live in phases through to 2030. DPS has said there is potential to take the site to 400MW over time.

This week saw the company announce that SSB has entered into a Memorandum of Understanding (MoU) with BBSB relating to the planned data center.

BBSB is a Malaysian design and construction firm. Under the MoU, BBSB could become a strategic partner in the planning, development, and utilization of the planned data center, including supporting the identification and coordination of potential users, tenants, and/or capacity requirements.

Dr. Sow Chin Chuan, group chairman and founder of DPS Resources Berhad, said: “This MoU marks another meaningful step in DPS’ strategy to advance our data center development pipeline in Melaka. Through the proposed collaboration with BBSB, we aim to explore a phased approach to data center capacity development, beginning with up to 89MW and with the potential to scale further, subject to the relevant approvals, feasibility assessments and definitive agreements.”

He continued: “As a landowner with existing factory rights and infrastructure development capabilities, DPS is focused on unlocking the long-term value of our assets through high-specification digital infrastructure.”

On August 7, DPS said its SSB unit had entered into a Memorandum of Understanding (MoU) with Hangyue Intelligent Electrical Co., Ltd. to establish a long-term strategic partnership in digital energy infrastructure, data centers, industrial development and related projects in Malaysia.

Under the MoU, Hangyue will facilitate the colocation of Chinese enterprises at SSB’s planned 89MW data center on land it owns in Kawasan Perindustrian Bukit Rambai.

Hangyue is a provider of digital energy infrastructure, specializing in power supply, distribution, system integration and the colocation of data centers.

DPS chairman Chuan said: “This MoU represents another important step in DPS’ ongoing strategy to strengthen our data center and digital energy infrastructure initiatives in Melaka. 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 utilization of our assets in Bukit Rambai.”

Founded in 2003, DPS Resources Berhad is an investment holding company. Once focused on furniture manufacture, the company later expanded into real estate development. Its subsidiaries include Shantawood Sdn Bhd and a dedicated property management company, Shantawood Property Management Sdn Bhd.

SSB lists its principal activities as the manufacturing of furniture and roof trusses, provision of kiln-drying services, trading in furniture, construction services, real property and housing development-related services. SSB is the owner of the data center project land and existing factory rights, and intends to develop and convert the proposed facility into a data center.

Melaka, also known as Malacca, is a coastal state in the southwestern peninsula of Malaysia. Most of Malaysia’s data centers are clustered around Kuala Lumpur – the country’s capital – and Johor, its southernmost peninsular state.

DPS has previously announced plans to develop up to 500MW of capacity in Mukim Lendu, Alor Gajah, as well as the potential conversion of its 20-acre Bukit Rambai factory into a data center offering from 4MW to 89MW of capacity.

In May, DPS announced an MoU with an affiliate of Chinese tech giant Alibaba to develop data centers in Melaka.

DPS has also previously signed an MoU with Invest Energy to develop a solar farm to support a planned AI data center and high-tech industrial park in Mukim Lendu, Alor Gajah, Melaka.