VCI Energy to supply Malaysia with renewable energy for AI data centres

Details: Vaughan O'Grady; Category: Energy & Sustainability; 23 December 2025; 9006 views

Underlining the continuing government push not only to make Malaysia an attractive home for data centres but for renewable energy to power those data stations is a recent announcement of a 250MW solar initiative positioned to supply AI data centres in Malaysia.

VCI Energy, a renewable energy platform managed and controlled by VCI Global, which describes itself as a cross-sector platform builder at the forefront of technology and financial architecture, has announced what it calls a major strategic expansion into infrastructure-scale energy in Malysia.

This follows a memorandum of understanding (MoU) with DPS Energy, a wholly owned subsidiary of DPS Resources, a Malaysian-listed engineering and energy company with established capabilities in renewable development and project execution, to develop a utility-scale solar photovoltaic platform of up to 250 megawatts on approximately 600 acres of land in the coastal state of Malacca, in southwestern Malaysia.

The project is being structured as an infrastructure-grade renewable energy platform capable of supporting up to 250MW of installed solar capacity, with estimated annual generation of approximately 350 to 450 gigawatt-hours (GWh), subject to final design and grid conditions.

The platform is intended to support long-term power purchase agreements with utilities, industrial users and data centre operators, while remaining future-ready for battery energy storage system integration.

Based on industry-standard assumptions for solar irradiation, capacity utilisation, and long-term power purchase agreements of up to 20 years, the project is designed to generate approximately 350 to 450 (GWh) annually.

And of course demand exists; Malaysia is rapidly emerging as a regional hub for hyperscale data centres and artificial intelligence infrastructure, supported by strong government policy, expanding semiconductor manufacturing, and increasing commitments by global technology leaders.

VCI Global argues that this project positions it as a key enabler of Malaysia’s AI-driven digital economy.

Of course, it is far from the only one. Last week we reported on two new renewable energy agreements involving Malaysian data centres announced around the same time as this one.

There will no doubt be more. As VCI Global points out, Malaysia has set national targets to raise renewable energy capacity to 31% by 2025 and 40% by 2035, reinforcing long-term structural demand for large-scale renewable energy platforms.