VCI Global Limited (NASDAQ: VCIG) is making waves on the US stock charts after unveiling a conditional multi-million-dollar contract award. Pre-market trading saw VCIG shares soar by 50.55%, reaching $2.74, signaling strong investor confidence in the company’s future prospects.
VCIG Inked Strategic Partnership for AI-Driven Data Center
Through its subsidiary, V-Gallant Sdn. Bhd., VCI Global (VCIG) secured a conditional Letter of Award worth approximately $24 million from Hexatoff Group Sdn. Bhd. This contract supports Hexatoff’s ambitious data center project in Enstek City, Malaysia. Under the agreement, V-Gallant will supply advanced AI hardware and software, including an AI computing system featuring 640 NVIDIA H200 Tensor Core GPUs, a cornerstone of the project’s initial phase.
Hexatoff Group, a prominent turnkey solutions provider in infrastructure and construction, holds Malaysia’s top-tier construction license (G7) and is recognized by the Ministry of Finance. This collaboration underscores Malaysia’s aspirations to become a regional leader in AI and digital infrastructure.
Malaysia’s Data Center Sector on the Rise
The contract win by VCI Global, aligns with Malaysia’s growing focus on data center investments. From 2021 to mid-2024, 12 data center projects totaling $21 billion (RM91 billion) have been approved, as reported the Malaysian Investment Development Authority (MIDA). These projects span critical areas such as cloud computing and data hosting. Of these, six projects totaling $16 billion (RM70 billion) are already operational across Johor, Selangor, and Kuala Lumpur.
Global Tech Giants Drive Malaysian Investments
Malaysia’s emergence as a data center hub has attracted substantial investments from major players. Microsoft and Google are establishing cloud regions, while NVIDIA collaborates with YTL Power International on a $4.3 billion AI Cloud Data Center. Investments by firms like Equinix and ST Telemedia further solidify Malaysia’s position as a critical ASEAN growth market.
With robust regulatory support and increasing corporate interest, Malaysia is rapidly transforming into a pivotal center for AI innovation and digital infrastructure, enhancing its appeal to global investors simultaneously creating ample opportunities for companies like VCI Global (VCIG).
