Deep Source Holdings Limited has announced two milestone agreements that underpin the development of its 67 MW artificial-intelligence data-centre project in Prai, Penang, Malaysia.

On 2 October 2026 the group’s subsidiary, Deep Source (PN) Sdn. Bhd. (DSPN), signed a master colocation services agreement with an undisclosed customer covering the facility’s entire 67 MW IT capacity. The contract carries an initial 10-year term commencing upon service acceptance, with phased delivery of capacity scheduled during 2027. From the service-commencement date, the customer will pay full monthly recurring charges based on the contracted capacity, while electricity will be billed on actual consumption.

Complementing the customer commitment, DSPN executed a letter of intent (LOI) on 7 October 2026 with Singapore-based Longmotive DC Solutions Pte. Ltd. to act as general contractor for the main building, civil, structural, mechanical and electrical works. The LOI specifies a lump-sum price of US$221.10 million for the 67 MW scope, excluding generator, cooling and power modules. An advance payment of US$11.06 million—equal to 5% of the contract sum—is due on signing, with further payments to be made in stages once formal contracts are concluded within 15 working days.

Early works, including mobilisation, procurement and site preparation, were authorised with effect from 1 October 2026. The construction timetable targets completion of the initial 26 MW tranche by 31 March 2027 (plus a 15-day grace period) and the remaining 41 MW by 30 June 2027, subject to certification and acceptance.

Management highlighted that the twin agreements secure long-term revenue visibility and enable timely procurement and construction planning for the Penang facility. Final project economics will depend on construction progress, financing and ongoing contractual performance. The company will release further updates upon execution of the definitive construction contracts and as the project advances.