DPS Resources Bhd has signed a memorandum of understanding (MoU) with BBSB Holdings Sdn Bhd to explore the phased development and use of up to 89MW of data centre capacity in Melaka, with potential expansion to as much as 400MW.
Under the proposed collaboration, DPS’ wholly-owned subsidiary Shantawood Sdn Bhd (SSB) and BBSB Holdings Sdn Bhd, a unit of Hong Kong-listed BBSB International Ltd, intend to work on a phased data centre capacity lease, subject to conditions precedent and definitive agreements.
The initial 89MW rollout is targeted at 20MW in 2027, 20MW in 2028, 20MW in 2029 and 29MW in 2030. The parties may subsequently explore scaling the project to an aggregate 400MW, subject to technical feasibility, regulatory approvals, infrastructure availability and commercial terms.
BBSB may also participate as a strategic partner in the planning, development and utilisation of the infrastructure, including helping identify potential users, tenants and capacity requirements.
SSB owns the relevant land and existing factory rights and plans to convert the site into a high-specification data centre facility.
DPS group chairman and founder Tan Sri Dr Sow Chin Chuan said the MoU advances the group’s data centre development pipeline in Melaka and provides a pathway to unlock the long-term value of its land and infrastructure assets.
The proposed projects have previously been assessed for power and water availability. DPS said SDT Engineering had confirmed sufficient power capacity of up to 500MW and 89.1MW for the respective projects, while Syarikat Air Melaka Berhad issued a no-objection letter on Aug 7 confirming water supply availability.
SSB has also received a letter of support from the Melaka Chief Minister, with the relevant applications submitted to the Data Centre Task Force for consideration and approval.
DPS said the collaboration, if implemented, could strengthen its data centre development pipeline and expand its participation in Malaysia’s growing digital infrastructure sector.
