Singapore-based AI cloud company Aolani plans to secure 500 megawatts (MW) of AI data center capacity across multiple sites in Malaysia from the second half of 2027, marking a significant expansion of its regional infrastructure ambitions. The company said Monday it had signed letters of intent (LOIs) for the capacity, which will support its growing portfolio of AI factories and GPU deployments. The proposed facilities will comprise Tier III data centers purpose-built for AI workloads, with Aolani providing the AI infrastructure, GPU deployment and operational requirements once the sites reach completion. The announcement places Malaysia at the center of Aolani’s next expansion phase as demand for computing resources rises among hyperscalers and companies building AI-native services.

Existing Commitments Could Lift Capacity to 580MW

The planned expansion builds on Aolani’s existing commitment to 80MW of data center capacity in Malaysia this year. Adding the proposed 500MW would bring its total committed capacity in the country to as much as 580MW by the end of 2027, although the new LOIs do not constitute binding construction or delivery commitments. That distinction matters in a market where announced capacity can precede final agreements, power arrangements and operational readiness. Aolani has not disclosed the counterparties to the LOIs, leaving questions about the sites, development structures and delivery arrangements unanswered.

Aolani expects the additional capacity to serve global hyperscalers and AI-native businesses while widening access to AI computing resources within Malaysia. The company is also exploring initiatives and partnerships aimed at supplying high-performance computing capacity to sovereign AI programmes, domestic enterprises, researchers and start-ups. This approach could position the planned infrastructure to serve two demand pools: international customers seeking large-scale compute and local organisations developing AI capabilities. However, the company has not disclosed how much capacity it expects to allocate to domestic users or how it would structure access to the proposed facilities.

Malaysia’s Infrastructure Advantage Draws Investment

Aolani CEO Nicholas Chia identified power economics, land availability and support from government and businesses as factors behind Malaysia’s growing appeal to AI infrastructure investors. “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. His comments point to a broader strategic question for Malaysia: whether investment in large-scale computing infrastructure can translate into wider economic activity and stronger domestic AI capabilities. The planned expansion could contribute to that objective, although its eventual impact will depend on project execution, customer demand and the extent to which local organisations can access the resulting computing resources.

Aolani cautioned that the LOIs remain nonbinding and are subject to negotiations and the execution of definitive agreements between the parties. The company has not named those parties or provided further details about the sites covered by the proposed capacity. As a result, the 500MW figure represents planned capacity rather than a confirmed delivery schedule for operational facilities. The distinction will remain important as investors and prospective customers assess how much of the announced capacity advances toward construction and deployment.

Nvidia Partnership Supports Regional AI Factory Plans

The Malaysia expansion follows Aolani’s agreement last month with Nvidia to collaborate on expanding AI factory infrastructure across Southeast Asia, beginning with Malaysia and the Philippines. Aolani, an Nvidia cloud partner since 2023, said it expects to deploy 22,000 Nvidia Blackwell Ultra GPUs across two AI factories in the two countries in early 2027. The planned deployments would lift Aolani’s total AI factory capacity across Southeast Asia to more than 100MW, according to the company. Together, the Nvidia collaboration and proposed Malaysian capacity expansion underscore Aolani’s push to build a larger regional footprint, although the 500MW LOIs remain subject to definitive agreements.