DEEP SOURCE (00990) plans to acquire a 176-hectare plot to build an AI data center campus, with 120 megawatts of power reserved.

DEEP SOURCE (00990) announces that on October 18, 2026, the buyer, Deep Source (PN) Sdn Bhd (an indirectly wholly-owned subsidiary of the Company), entered into a sale and purchase agreement with the seller, ASAS Panorama Sdn Bhd, pursuant to which the seller agreed to sell and the buyer agreed to purchase the property at a price of RM417 million (equivalent to HK$802 million), intended for use as development land for an AI data center and upstream and downstream industry projects. The property is located at PN33573, Lot 115524, Bandar Gebeng, Daerah Kecil Gebeng, Negeri Pahang, and is a parcel of land located in Pahang, Malaysia, with an area of 176.3 hectares (equivalent to approximately 18,976,800 square feet). The property is intended to be developed primarily for AI data center facilities, together with related power infrastructure and ancillary facilities. Given its large land area of approximately 176.3 hectares, the Group intends to adopt a phased development approach, initially focusing on AI data center 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 September 7, 2026 that the Group's AI data center project in Malaysia had obtained approval from the Ministry of Investment, Trade and Industry of Malaysia. On October 7, 2026, the Company further announced that, in respect of independent data center projects in different regions of Malaysia, the Group had entered into master colocation service agreements with customers covering 67 MW of IT capacity. The acquisition relates to the proposed development of a new AI data center on the property within Malaysia-China Kuantan Industrial Park 2, and is separate from the above-mentioned 67 MW project. The acquisition marks another step forward in the Group's strategy to expand its Malaysian data center 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 October 18, 2026 to reserve 120 MW of power generation capacity for the proposed development project on the property, subject to the fulfillment of the terms and conditions of the letter of commitment. The parties intend to negotiate a final power supply agreement. Reserved power generation capacity is not equivalent to IT capacity that has been commissioned or delivered. The Group also intends to apply for a new power generation license to support the additional power generation capacity required for potential future expansion of the data center on the property, subject to obtaining necessary regulatory approvals. As at the date of this announcement, the Group has not obtained the relevant license. The property has a total site area of approximately 176.3 hectares and is expected to provide a site for the phased development and potential future expansion of AI data center facilities, 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 funding allocation requirements. In addition to developing AI data center 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 evaluation and reaching agreements, such cooperation may involve strategic investment, joint development arrangements, or the introduction of complementary enterprises in AI, semiconductor-related and other technology fields. These plans do not represent any specific cooperation or investment commitment. The Directors believe that the property's large land area, its geographical location within Malaysia-China Kuantan Industrial Park 2, and the conditionally reserved 120 MW 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 potential diversification of revenue sources, subject to regulatory approvals, available power, customer demand, funding and commercial viability.