Highlights

  • Core AI and CSPM plan to retrofit existing data centers into AI-capable Tier 3 and Tier 4 facilities
  • The approach prioritises faster deployment by leveraging established power and network infrastructure
  • Malaysia’s data center market is forecast to expand sharply through the end of the decade

Core AI Holdings, Inc. (NASDAQ:CHAI), a Nasdaq-listed AI-focused technology and investment platform, has signed a Memorandum of Understanding with CSPM Resources SDN BHD, a Malaysian data center developer. The agreement outlines a framework for collaboration aimed at developing next-generation AI-ready data centers across Malaysia.

The MOU marks an initial step toward identifying suitable assets and negotiating definitive agreements to formalise the partnership. Both parties have indicated an intent to pursue opportunities aligned with the evolving infrastructure needs of AI-driven computing.

Focus on Retrofitting AI-Ready Infrastructure

Rather than pursuing greenfield developments, the collaboration plans to identify existing edge computing facilities and upgrade them to meet Tier 3 or Tier 4 specifications. These upgrades are expected to address higher power density requirements, enhanced cooling systems, and increased redundancy needed for AI-intensive workloads.

Once converted, the facilities may operate as co-location assets or be positioned for potential transactions with hyperscalers seeking fully built, AI-capable infrastructure.

Accelerated Development Through Existing Assets

By utilising established facilities with existing power access and network connectivity, the partners aim to reduce construction timelines. Operational readiness for upgraded sites is targeted at approximately 12 months, subject to regulatory approvals and technical requirements.

This strategy reflects a broader industry shift toward optimising existing infrastructure to meet rapidly changing computational demands.

Malaysia’s Expanding Data Center Landscape

Malaysia has emerged as a regional hub for data center investment, supported by infrastructure development and increasing interest from global cloud and technology companies. Industry estimates project the country’s data center market to grow from about $4 billion in 2024 to approximately $13.6 billion by 2030, representing a compound annual growth rate of over 20%.

Role of Local Expertise and Regulatory Access

CSPM Resources brings experience in designing and delivering mission-critical data centers within Malaysia. The company’s relationships with government authorities, utilities, and financial institutions may support regulatory processes and access to energy resources required for AI-focused facilities.

Next Steps Toward Definitive Agreements

The parties have indicated that discussions are underway to draft and negotiate definitive agreements following the MOU. The initiative highlights how global AI platforms and regional developers are aligning to address the infrastructure requirements associated with AI adoption.

Latest Trading Price (as of February 04, 2026): Core AI Holdings Inc. (Nasdaq: CHAI) traded at USD 1.39, down 8.55%.