Aolani, a Singapore-founded neocloud powering AI growth, has signed Letters of Intent to take up 500 megawatt (MW) of AI data centre capacity in Malaysia, with the capacity targeted to come online starting in the second half of 2027 across multiple sites. The announcement matters because it represents one of the largest commitments to AI-specific infrastructure in Southeast Asia and positions Malaysia as a central hub for the region's AI economy.
The sites, designed to Tier III standards, will house purpose-built AI data centres supporting Aolani's expanding portfolio of AI factories and GPU deployment. Under the arrangement, Aolani will provide the AI infrastructure, GPU deployment, and operating requirements across the facilities upon completion. With this commitment, Aolani projects it will have up to 580MW of capacity in Malaysia by 2027, up from approximately 80MW already committed in 2026—a more than sevenfold increase that underscores the scale of demand for AI compute.
Malaysia has emerged as a key destination for AI infrastructure investment in the region, driven by competitive power costs, available land, and growing governmental and business support for digital infrastructure development. The expanded capacity will serve demand from global hyperscalers and AI-native companies while also making AI compute accessible locally. Aolani is also exploring initiatives and partnerships to provide high-performance compute capacity to Malaysian sovereign AI programmes, local enterprises, researchers, and start-ups.
Nicholas Chia, Chief Executive Officer 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 next 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."
The Letter of Intent is non-binding and remains subject to the negotiation and execution of definitive agreements between the parties. Still, the move signals Aolani's ambition to scale rapidly in a market that is becoming a focal point for AI investment. More information about the company's cloud services is available at https://www.aolanicloud.com/.
