How is Core AI Supporting Malaysia’s AI-Ready Data Centres?

Core AI Holdings, Inc. has announced plans to work with Malaysian data centre developer CSPM Resources SDN BHD as part of its global AI data centre initiative. 

The company positions the proposed partnership as a structured entry into Malaysia’s high-growth AI data centre market, where global hyperscalers commit billions of dollars to digital infrastructure and capacity.

The two companies have entered into a Memorandum of Understanding (MoU) that sets out an intention to pursue next-generation AI-ready data centre opportunities across the region. 

Core AI identifies Malaysia as a priority market due to rising hyperscaler activity, established connectivity and supportive government policies aimed at strengthening digital infrastructure.

Aitan Zacharin, CEO of Core AI Holdings, Inc. says: “This partnership represents an important execution milestone in our global AI data centre initiative.

“Global hyperscalers are investing billions of dollars in Malaysia, including major commitments from Amazon Web Services, Oracle, Google, TikTok and Microsoft and partnering with CSPM positions Core AI to capitalise on the opportunities created by these investments. 

“As hyperscalers increasingly require turnkey, AI-optimised facilities, CSPM stands out as one of the region’s most experienced developers and trusted partners. 

“We believe that by leveraging CSPM’s technology, high level technical expertise and deep industry and government relationships we will have an advantage in the market. 

“Together, we see a compelling opportunity to capture a meaningful share of these multi-billion-dollar investments by repositioning existing facilities for the AI era.”

Following the signing of the MoU, Core AI has confirmed that both parties proceed to draft and negotiate definitive agreements to formalise the collaboration. 

The focus remains on delivering AI-optimised facilities that align with hyperscaler requirements for speed, resilience and scalability.

Retrofitting facilities for AI workloads

Under the planned partnership, Core AI and CSPM aim to identify existing edge computing data centres and retrofit and expand them into Tier 3 or Tier 4 AI-capable facilities. 

Edge computing data centres are smaller facilities located closer to end users or networks. Tier 3 and Tier 4 refer to classifications that define high levels of redundancy, fault tolerance and uptime, which are essential for AI-intensive and mission-critical workloads.

By upgrading existing sites, the companies seek to reduce development timelines. 

Core AI stated that operational readiness could be achieved in approximately 12 months by leveraging established power access and network connectivity.

Once upgraded, the facilities are expected to operate as co-location assets or be positioned for sale to hyperscalers that require fully built AI-ready infrastructure.

Malaysia’s data centre market continues to expand at pace. The market is projected to grow from US$4bn in 2024 to US$13.6bn by 2030, representing a compounded annual growth rate of 22.4%. 

This growth reflects demand for cloud services, AI applications and regional capacity from global technology firms.

For data centre operators, retrofitting existing assets provides an alternative to greenfield development. 

Greenfield projects involve building entirely new facilities on undeveloped land and often require longer planning, permitting and power allocation processes. 

Core AI has presented the retrofit model as a way to meet hyperscaler demand while managing time and capital requirements.

CSPM’s position in the local market

CSPM operates as one of Malaysia’s established data centre developers and delivers complex, mission-critical facilities. 

The company designs, builds and supports data centres for global hyperscalers and cloud service providers. 

CSPM also contributes to the development of many of Malaysia’s existing edge computing and high density AI data centre facilities.

Local integration forms a core part of CSPM’s value. The company maintains long-standing relationships with government authorities, utilities and financial institutions. 

These relationships support access to energy allocations and help streamline regulatory approvals, both of which are central considerations for AI data centre projects.

Bryan Tan, CEO of CSPM says: “Malaysia has emerged as a leading destination for data centre investment in Southeast Asia, driven by hyperscaler investment, strong infrastructure fundamentals and government support.

“As demand shifts toward AI-intensive workloads, we see the need for AI-ready data centres is growing significantly. 

“Many existing edge facilities are strategically located but were not designed to meet the power, cooling and redundancy requirements of modern AI workloads. 

“We believe there is a significant opportunity to upgrade and repurpose existing assets rather than pursue slower, more capital-intensive greenfield developments. 

“We selected Core AI as a partner for its AI-focused data centre strategy and disciplined investment approach, to collaborate on pursuing AI data centre opportunities in Malaysia. 

“By combining Core AI’s strategic vision with our local expertise and relationships, we can provide fast, flexible and connected solutions while capturing a meaningful share of this high-growth market.”

Meeting hyperscaler expectations

Hyperscalers are large technology companies that operate extensive global data centre platforms to deliver cloud and digital services at scale. 

These organisations increasingly require AI-ready facilities that support high density computing, advanced cooling systems and resilient power infrastructure.

Core AI frames its planned partnership with CSPM as a response to these expectations. 

By repositioning existing facilities for AI workloads, the companies aim to deliver turnkey solutions in a market that continues to attract multi-billion-dollar investment and attention from global technology leaders.