Deep Source Holdings (00990) has announced that on 18 October 2026, its indirectly wholly-owned subsidiary Deep Source (PN) Sdn Bhd entered into a sale and purchase agreement with vendor ASAS Panorama Sdn Bhd, under which the vendor agreed to sell and the buyer agreed to purchase the property for MYR 417 million (equivalent to HKD 802 million), intended for development as an artificial intelligence data centre and related upstream and downstream industrial projects.

The property is located at PN33573, Lot 115524, Bandar Gebeng, Daerah Kecil Gebeng, Negeri Pahang, comprising a parcel of land in Pahang, Malaysia with an area of 176.3 hectares (equivalent to approximately 18.98 million square feet).

The property is primarily intended for development as an AI data centre facility, together with associated power infrastructure and ancillary facilities. Given its substantial land area of approximately 176.3 hectares, the Group plans to adopt a phased development approach, initially focusing on AI data centre infrastructure while retaining flexibility to capture potential future expansion opportunities, subject to obtaining necessary regulatory approvals, power supply and commercial viability.

Depending on market demand, applicable land use and planning requirements, regulatory approvals and commercial viability, the Group may also explore opportunities to attract strategic investors, technology partners and enterprises engaged in AI computing infrastructure, semiconductor-related activities and other complementary technology industries, with a view to establishing a broader technology and digital infrastructure ecosystem on the property.

The Company announced on 7 September 2026 that the Group's AI data centre project in Malaysia had received approval from Malaysia's Ministry of Investment, Trade and Industry. On 7 October 2026, the Company further announced that, in respect of separate data centre projects in different regions of Malaysia, the Group had entered into master hosting service agreements with customers covering 67 megawatts of IT capacity. The acquisition relates to the proposed development of a new AI data centre on the property within the Malaysia-China Kuantan Industrial Park 2, which is distinct from the aforementioned 67MW project.

The acquisition marks another step forward in the Group's strategy to expand its Malaysia data centre business footprint by developing projects in different regions. In connection with the acquisition, Beibu Gulf Holding (Malaysia) Sdn. Bhd. (Beibu Malaysia), which operates a substation near the property, executed a letter of commitment on 18 October 2026 to reserve 120 megawatts of generation capacity for the proposed development project on the property, subject to the fulfilment of the terms and conditions of the letter of commitment. The parties intend to negotiate a final power supply agreement. Reserved generation capacity does not equate to commissioned or delivered IT capacity.

The Group also intends to apply for a new power generation licence to support the additional generation capacity required for potential future expansion of the data centre on the property, subject to obtaining necessary regulatory approvals. As at the date of this announcement, the Group has not obtained the relevant licence.

The property has a total site area of approximately 176.3 hectares and is expected to provide a site for the phased development of AI data centre facilities and potential future expansion, subject to planning requirements, regulatory approvals, available power and customer demand. The Group intends to adopt a phased development model, taking into account available power, customer demand, regulatory approvals and capital allocation requirements.

In addition to developing AI data centre facilities, the Group intends to explore potential cooperation with third-party investors, infrastructure operators and technology companies in respect of the development of the property. Subject to further assessment and the reaching of agreements, such cooperation may involve strategic investment, joint development arrangements, or the introduction of complementary enterprises in the AI, semiconductor-related and other technology sectors. These plans do not represent any specific cooperation or investment commitment.

The Directors believe that the property's substantial land area, its geographical location within the Malaysia-China Kuantan Industrial Park 2, and the conditionally reserved 120MW of power capacity can lay the foundation for long-term phased development and future expansion. The reserved capacity remains subject to the terms of the letter of commitment, and the final power supply agreement has not yet been signed. These initiatives are intended to support the Group's long-term development strategy and the potential diversification of its revenue sources, subject to regulatory approvals, available power, customer demand, funding and commercial viability.