Aolani commits to 500MW of AI data centre capacity in Malaysia in 2027

Details: John Tanner; Category: Data Centres & Networks; 21 October 2026; 623 views

Singapore-based AI cloud firm Aolani said on Monday it has signed a Letters of Intent (LOI) to take up 500 MW of AI data centre capacity in Malaysia starting in the second half of 2027 across multiple sites.

Aolani said the Tier-III sites will house purpose-built AI data centres supporting its expanding portfolio of AI factories and GPU deployment. Aolani will provide the AI infrastructure, GPU deployment, and operating requirements across the facilities upon completion.

Prior to the LOI, Aolani had already committed to 80MW of capacity in Malaysia this year. The new arrangement means Aolani has committed to up to 580MW of capacity by the end of next year.

Aolani said 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.

Aolani CEO Nicholas Chia said that 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.

“Malaysia is already firmly established as a global hub for AI infrastructure, but the net stage is using local compute to catalyse development of the local AI ecosystem and the broader economy,” Chia said in a statement.

Aolani noted that the LOI is non-binding and remains subject to the negotiation and execution of definitive agreements between the parties. Aolani also didn’t say which parties it signed the LOI with.

Last month, Aolani signed a deal with Nvidia to collaborate on expanding 'AI factory' infrastructure across Southeast Asia, starting with Malaysia and the Philippines.

Aolani – which has been an Nvidia cloud partner since 2023 – said it expects to deploy 22,000 Nvidia Blackwell Ultra GPUs across two AI factories in Malaysia and the Philippines in early 2027, which would expand its total AI factory capacity in Southeast Asia to more than 100MW.