DEEP SOURCE (00990.HK): 10-year colocation deal for 67MW Penang data centre
- The Services Agreement was entered into on 2 October 2026 between DSPN and a customer covering 67MW of IT capacity at the Project in Prai, Penang, Malaysia; the facilities are scheduled for phased delivery in 2027, subject to completion of construction and satisfaction of the agreed acceptance requirements.
- The Services Agreement has an initial term of 10 years commencing on the Service Commencement Date notified by DSPN to the Customer; the Customer must pay the full monthly recurring service charges based on contracted capacity irrespective of actual utilisation, while electricity charges are settled based on actual consumption.
- Under the LOI dated 7 October 2026 with Longmotive DC Solutions Pte. Ltd., a lump sum price of US$221.1 million applies to the specified 67MW scope, with an advance payment of US$11.055 million (5% of the contract sum) payable on execution; the 26MW portion is due by 31 March 2027 and the remaining 41MW by 30 June 2027.
NewTimeSpace News: On 7 October 2026, Deep Source Holdings Limited (stock code: 00990) published a voluntary announcement and business update on its data centre project in Prai, Penang, Malaysia. The project has a planned IT capacity of 67MW; the Group has entered into a data centre colocation services agreement with an initial term of 10 years covering such 67MW of IT capacity, and a letter of intent for the project's main building construction and mechanical and electrical works, with the relevant preparatory and early works authorised to commence.
According to the announcement, on 2 October 2026, Deep Source (PN) Sdn. Bhd. (DSPN), an indirect wholly-owned subsidiary of the Company, entered into a master data centre colocation services agreement with a customer, under which DSPN will provide access to and use of designated data centre facilities in Malaysia together with related colocation, infrastructure and supporting services; the facilities are scheduled for phased delivery in 2027. The Services Agreement has an initial term of 10 years commencing on the Service Commencement Date, with the Customer required to pay the full monthly recurring service charges based on the contracted capacity irrespective of actual utilisation, while electricity charges are settled based on actual consumption.
According to the announcement, on 7 October 2026, DSPN entered into a letter of intent with Longmotive DC Solutions Pte. Ltd., an independent third party, for the proposed appointment of Longmotive as general contractor for the main building and mechanical and electrical works of the Project, setting out a lump sum price of US$221.1 million for the specified 67MW scope (inclusive of applicable taxes but excluding sales and service tax on long lead equipment); an advance payment equal to 5% of the contract sum, being US$11.055 million, is payable upon execution of the LOI and submission of the stipulated corporate guarantee. The 26MW portion is to be completed by 31 March 2027 and the remaining 41MW portion by 30 June 2027.
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