Zhiyuan Holdings Signs 10-Year Hosting Deal and US$221.1M Engineering LOI for Penang AI Data Center
On Oct 7, 2026, Zhiyuan Holdings Limited announced that its indirect wholly-owned subsidiary Deep Source (PN) Sdn. Bhd. (DSPN) had signed a 10-year data center hosting master agreement for the company's Prai AI data center project in Penang, Malaysia, and had entered into a separate letter of intent for the project's main building and mechanical and electrical works. The project has a planned IT capacity of 67 MW.
According to the announcement, on Oct 2, 2026, DSPN entered into the hosting master agreement with a customer for the full 67 MW IT capacity. DSPN will provide data center facilities and hosting, infrastructure and supporting services for the customer's computing equipment in Malaysia. The facilities are scheduled for phased delivery in 2027, subject to completion of construction and acceptance criteria. The 10-year service term begins on the date notified to the customer after DSPN receives written acceptance confirmation. The customer is required to pay the full monthly recurring fee based on contracted capacity from the service start date, while electricity charges will be settled based on actual usage.
On Oct 7, DSPN signed a letter of intent with independent third party Longmotive DC Solutions Pte. Ltd., which is proposed to be engaged as the main contractor for the main building and mechanical and electrical works. The LOI sets a fixed total price of US$221.1 million for the 67 MW scope. An advance payment equal to 5% of the contract price, or US$11.055 million, is payable upon signing and provision of corporate guarantees. According to the LOI, the 26 MW portion must be completed by March 31, 2027, with a 15-day grace period, and the remaining 41 MW portion must be completed by June 30, 2027.
The LOI authorizes preparatory and advance works from Oct 1, including mobilization, construction planning, procurement, approvals and site preparation. The parties have agreed to sign a formal contract within 15 business days of the LOI date. The subsequent construction and installation contract is expected to be signed with Polar Construction Sdn. Bhd. The board believes the construction arrangement and long-term customer agreement mark an important milestone for the group's data center business in Malaysia and are expected to support recurring revenue after services begin.
