Aolani, a Singapore-founded neocloud provider focused on AI growth, announced on 19 October 2026 that it has signed Letters of Intent to take up 500 megawatt (MW) of AI data centre capacity in Malaysia. The capacity is targeted to come online starting in the second half of 2027 across multiple sites in Malaysia, according to a press release issued via Media OutReach Newswire.
Designed to Tier III standards, the sites 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 commit up to 580MW of capacity in Malaysia by 2027, up from approximately 80MW already committed in 2026.
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. The announcement signals growing momentum in Southeast Asia's AI infrastructure buildout and highlights Malaysia's rising role as a regional hub. For businesses and researchers in the region, the planned capacity could lower barriers to accessing high-performance compute, while also attracting further investment and partnerships. As global demand for AI compute continues to surge, such commitments are critical for ensuring that local ecosystems can participate in and benefit from the AI economy. More information about Aolani is available at https://www.aolanicloud.com/.
