DPS Resources expands digital infrastructure portfolio with 400 MW Melaka data centre project

DPS Resources has entered a strategic agreement with HKEX-listed BBSB International's subsidiary to develop up to 400 MW of data centre capacity in Melaka, Malaysia, launching with an initial 89 MW phased development.

Malaysian investment holding company DPS Resources has secured a preliminary agreement to establish a major digital infrastructure facility in Melaka. Operating through its wholly-owned unit Shantawood, the group partnered with BBSB Holdings-a subsidiary of Hong Kong-listed BBSB International-to develop a data centre capacity of up to 89 MW, with long-term plans to scale the site to an aggregate capacity of 400 MW. Under the proposed framework, Shantawood will redevelop its existing land and industrial assets into high-specification facilities, while BBSB will act as a strategic partner to manage tenant identification, capacity allocation, and operational infrastructure integration.

The strategic move reflects a broader trend among industrial asset owners seeking to repurpose real estate assets for high-yield technology use. The project aligns with Malaysia’s ambition to establish itself as a primary data hub in Southeast Asia, driven by rising demand for cloud services and artificial intelligence workloads. By repurposing legacy manufacturing sites, infrastructure developers can significantly shorten setup timelines compared to greenfield projects, offering faster market entry for global cloud service providers and enterprise end-users.

Development will unfold across four distinct phases to ensure balanced capital deployment and infrastructure readiness. The initial rollout schedules 20 MW for completion in 2027, followed by equal 20 MW increments in 2028 and 2029, concluding with a final 29 MW deployment in 2030. Utility requirements for the site have already been addressed, with power allocations of up to 500 MW confirmed by local engineering consultants and water utility approvals secured from Syarikat Air Melaka. Final regulatory filings have been submitted to the state’s dedicated task force to obtain full operational clearance.

This initiative substantially shifts the strategy of DPS Resources, transitioning the company from traditional wood-based manufacturing, furniture trading, and property management toward high-density digital infrastructure and green energy integration. For regional real estate and power markets, the project highlights the accelerating absorption of industrial land for digital capacity across regional hubs. The multi-stage capacity expansion offers long-term, predictable revenue streams for involved stakeholders while strengthening supply chain ecosystems surrounding digital transformation across Southeast Asia.