Singaporean startup neocloud Aolani has signed a Letter of Intent to take up 500MW of data center capacity in Malaysia.

The capacity is currently set to start coming online in the second half of 2027, and will be split between multiple sites in the country.

Aolani has not stated the identity of the data center company with which the agreement has been made.

According to the neocloud, the data centers are all designed to Tier III standards and will be designed to support AI factories and GPU deployment. Aolani will own the AI infrastructure and handle the deployment and operation of the data centers once live.

The 500MW builds on existing capacity agreements totaling 80MW, bringing Aolani's total to 580MW. The Letter of Intent remains subject to negotiation and execution between the parties.

Nicholas Chia, CEO at Aolani, said: “Malaysia is a vital strategic anchor for Aolani and a proven home market where we continue to grow our footprint as a hyperlocal neocloud. Malaysia is already firmly established as a global hub for AI infrastructure, but the net stage is using local compute to catalyse development of the local AI ecosystem and the broader economy. We are committed to steering this effort, using this capacity expansion to work with local partners across the ecosystem to further democratise access to compute.”

Aolani was founded in 2023. In the Philippines, the company is working with YCO Cloud on an Nvidia GB300 NVL72 deployment and has also signed agreements with Rafay and FriendliAI to bring AI cloud infrastructure online.

In September, Aolani revealed it was working with Nvidia to deploy 22,000 GPUs across its AI factories in Malaysia and the Philippines, aiming to bring its total to more than 48,000 GPUs. The company specifically named the Nvidia Blackwell Ultra GPUs as being among those it would deploy.

Malaysia has an existing and rapidly developing data center market, with its major data center hubs located in Cyberjaya, Johor, and Kuala Lumpur.