VCI Global Limited’s renewable‑energy arm, VCI Energy, entered into a memorandum of understanding with DPS Energy to develop a 250‑megawatt solar photovoltaic platform on 600 acres in Lipat Kajang, Bukit Apit II, Malacca. The project is projected to generate between 350 and 450 gigawatt‑hours of clean electricity each year and is expected to produce $18 million to $24 million in gross revenue annually over a 20‑year operating life.
The partnership positions VCI Global at the heart of Malaysia’s rapidly expanding data‑center ecosystem. With the country’s data‑center market projected to grow as AI and cloud services demand more power, the solar platform will provide a reliable, renewable source of electricity that aligns with Malaysia’s renewable‑energy targets of 31 % by 2025 and 40 % by 2035. DPS Energy, a subsidiary of DPS Resources Berhad, brings local expertise and a proven track record in large‑scale solar development.
VCI Global’s CEO, Dato’ Victor Hoo, emphasized that the project is “not just a solar project; it is an infrastructure platform.” He added that the initiative will help the company secure the energy layer of its sovereign‑AI infrastructure stack, reinforcing its strategy to support the digital economy through energy and platform‑based assets. The move follows VCI Global’s earlier announcement of plans to develop up to 100 MW of solar PV projects across Southeast Asia and Europe, underscoring a scaling ambition in renewable energy.
Financially, VCI Global reported record revenue of $27.8 million for the fiscal year ended December 31 2024, a 41 % year‑over‑year increase, and maintains a strong balance sheet with more cash than debt and a healthy current ratio of 2.3. The new solar project will be financed through a mix of equity and debt, with the company seeking to leverage its cash position and favorable credit terms to support the capital‑intensive development.
The announcement was well received by investors, reflecting confidence in the project’s alignment with Malaysia’s renewable targets and the growing data‑center market. Analysts noted the strategic fit of the solar platform within VCI Global’s broader portfolio and the potential for long‑term revenue generation from offtake agreements with data‑center operators.
The project’s success will depend on securing final grid approvals, finalizing offtake agreements, and managing financing costs. While the scale of the development offers significant revenue potential, it also introduces execution risk typical of large‑scale infrastructure projects, including regulatory approvals and market‑price volatility for solar assets.
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