Tanco Holdings Bhd is expanding its footprint into the fast-growing data centre sector through a strategic collaboration with China Mobile International Limited (CMI) to explore the development of a 50-megawatt (MW) data centre in Port Dickson, Negeri Sembilan.
In a filing with Bursa Malaysia, Tanco said its indirect wholly owned subsidiary, Tanco Dot Com Sdn Bhd (TDCSB), had signed a memorandum of understanding (MOU) with CMI on June 9 to jointly evaluate the proposed project.
The proposed facility, which would carry an IT load capacity of 50MW, marks Tanco’s latest move to diversify beyond its traditional property and hospitality businesses and tap into rising demand for digital infrastructure in Malaysia.
CMI is the international business arm of China Mobile Limited and is responsible for the group’s global operations. Headquartered in Hong Kong, the company operates extensive international telecommunications networks and provides connectivity, cloud and digital solutions across multiple markets worldwide.
Under the MOU, both parties will explore opportunities to develop and build the data centre project in Port Dickson. The agreement will remain in force for an initial period of one year and may be renewed upon expiry unless terminated by either party.
The parties may also enter into a definitive agreement to formalise the collaboration, which would supersede the current MOU. If no definitive agreement is reached within two years of the signing date, the MOU will automatically lapse.
Tanco noted that the agreement is non-binding in nature, except for confidentiality obligations, and is intended primarily to facilitate discussions and evaluate the feasibility of the proposed project.
The company said the collaboration aligns with its strategy of establishing relationships with reputable global industry players to expand into new business segments, particularly the rapidly growing data centre industry.
Malaysia has emerged as one of Southeast Asia’s key data centre investment destinations, attracting significant interest from global technology firms and infrastructure operators due to its strategic location, reliable power supply and growing digital economy.
Should the project proceed, it would add to the increasing pipeline of data centre developments across the country, particularly as demand for cloud computing, artificial intelligence workloads and digital services continues to accelerate.
Tanco said further announcements will be made should the discussions progress into a definitive agreement or result in any material developments.
