VCI Global Receives Conditional Letter of Award for US$24 Million AI Contract

Rhea-AI Summary

VCI Global (NASDAQ: VCIG) has received a conditional Letter of Award worth US$24 million from Hexatoff Group for an AI data center project in Enstek City, Malaysia. Through its subsidiary V-Gallant, VCI Global will supply AI hardware and software solutions, including an AI computing system with 640 NVIDIA H200 Tensor Core GPUs. This project aligns with Malaysia's growing data center sector, which has approved 12 projects worth US$21 billion from 2021 to June 2024, with six projects valued at US$16 billion already operational.

Positive

• Secured a significant US$24 million contract for AI hardware and software solutions
• Partnership with a government-registered contractor holding Malaysia's highest-grade construction license
• Project involves deployment of high-end NVIDIA H200 Tensor Core GPUs

Negative

• Contract is conditional, indicating execution risks
• Heavy dependence on single large contract

Insights

Financial Technology Analyst

This $24 million AI hardware contract marks a significant milestone for VCI Global, representing over 400% of their current market cap of $5.67 million. The deal's scope, featuring 640 NVIDIA H200 GPUs, positions VCIG strategically in Malaysia's rapidly expanding data center market.

The contract's conditional nature warrants careful consideration. While Malaysia's data center sector shows robust growth with $21 billion in approved investments, execution risks remain significant for a company of VCIG's size. The partnership with Hexatoff Group, holding Malaysia's highest-grade construction license, provides some reassurance but doesn't eliminate implementation challenges.

Key monitoring points include:

• Contract finalization conditions and timeline
• Working capital requirements for GPU procurement
• Project execution capabilities given VCIG's current scale

Market Research Analyst

Malaysia's strategic positioning in the ASEAN data center market presents compelling growth potential. The country has successfully attracted major tech giants, with $16 billion worth of data center projects already operational. The government's supportive regulatory framework and sustained corporate investments create a favorable environment for VCIG's expansion.

The timing aligns with increasing regional demand for AI infrastructure, particularly following NVIDIA's $4.3 billion partnership with YTL Power. This contract could establish VCIG as a key player in Malaysia's AI infrastructure buildout, potentially leading to additional opportunities in the $21 billion approved investment pipeline.

KUALA LUMPUR, Malaysia, Nov. 27, 2024 (GLOBE NEWSWIRE) -- VCI Global Limited (NASDAQ: VCIG) (“VCI Global” or the “Company”), through its subsidiary, V-Gallant Sdn. Bhd. (“V-Gallant”), is pleased to announce that it has received a conditional Letter of Award valued at approximately US$24 million from Hexatoff Group Sdn. Bhd. (“Hexatoff Group”) for its proposed data center project in Enstek City, Malaysia.

Under the agreement, V-Gallant has been selected to supply cutting-edge AI hardware and software solutions, including an AI computing system featuring 640 units of NVIDIA H200 Tensor Core GPUs. This deployment will support the first phase of Hexatoff Group’s data center development.

Hexatoff Group, a turnkey solutions provider specializing in infrastructure and building construction, is registered with the Ministry of Finance Malaysia and holds the nation’s highest-grade construction license (G7). This collaboration is expected to position Malaysia as a leading hub for AI and digital infrastructure in Southeast Asia.

Recent developments highlight Malaysia’s growing prominence in the data center sector. According to the Malaysian Investment Development Authority (MIDA), the country has approved 12 data center investment projects, covering activities such as cloud computing and data hosting, with a total investment value of around US$21 billion (around RM91 billion) from 2021 to June 30, 2024.

The Ministry of Investment, Trade and Industry (MITI) reported that six of these projects, worth around US$16 billion (approximately RM70 billion), are now operational and strategically located in Johor (four projects), Selangor (one), and Kuala Lumpur (one). These advancements underline Malaysia’s role as a key data center growth market in ASEAN, bolstered by sustained corporate investments and progressive regulatory frameworks.

“With major global players like Microsoft and Google investing billions to establish cloud regions, and NVIDIA partnering with YTL Power International Berhad on a US$4.3 billion AI Cloud Data Center, Malaysia is undergoing an unprecedented transformation. Investments by companies such as Equinix and ST Telemedia further highlight the country’s attractiveness as a data center growth hub,” said Dato’ Victor Hoo, Group Executive Chairman and CEO of VCI Global. “Our partnership with Hexatoff Group supports Malaysia’s vision for innovation and sustainable growth, reinforcing our commitment to advancing AI and digital infrastructure in the region.”

About VCI Global Limited

VCI Global is a diversified holding company headquartered in Kuala Lumpur, Malaysia. The Company operates through five core businesses: Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity. In Capital Market Consultancy, we provide IPO solutions, investor relations (IR) and public relations (PR) consultancy, and M&A consultancy. Our Fintech arm offers a proprietary financing platform. In Real Estate, we offer specialized real estate consultancy services. The AI business delivers GPU servers, GPU cloud computing services, AI and large language model (LLM) solutions, while the Robotics segment focuses on post-harvest robotics systems. Our Cybersecurity segment provides comprehensive cybersecurity consultancy services and solutions. Committed to fostering innovation and delivering exceptional value, VCI Global has established a strong presence across the Asia-Pacific region, the United States, Europe, and the Middle East, driving growth and transformation on a global scale.

For more information on the Company, please log on to https://v-capital.co/. 

About Hexatoff Group Sdn. Bhd.

Hexatoff Group Sdn. Bhd. is a leading turnkey solution provider specializing in the construction of infrastructure and buildings in Malaysia. The company is registered with the Ministry of Finance Malaysia and holds the highest-grade construction license (G7), signifying its capability to undertake large-scale projects.

Founded in 2015, Hexatoff Group combines innovative construction methods with over 20 years of collective industry expertise to deliver excellence and reliability in every project. Its portfolio includes notable developments such as Aster Residence, Salak South Residential Development, and Twinz Condominium, collectively valued at over RM200 million in contract awards.

Committed to innovation, sustainability, and quality, Hexatoff Group continues to leave a transformative impact on Malaysia’s urban and industrial landscapes, building a legacy of trust and excellence.

For more information on the Company, please log on to https://hexatoffgroup.com/.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These forward-looking statements are based only on our current beliefs, expectations, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company’s products and the Company’s customers’ economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company’s filings with the United States Securities and Exchange Commission (“SEC”). The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.

CONTACT INFORMATION:

For media queries, please contact:

VCI Global Limited
enquiries@v-capital.co

FAQ

What is the value of VCI Global's (VCIG) new AI contract in Malaysia?

VCI Global (VCIG) received a conditional Letter of Award valued at approximately US$24 million from Hexatoff Group for an AI data center project in Enstek City, Malaysia.

How many NVIDIA GPUs will VCI Global (VCIG) supply in the Hexatoff Group contract?

VCI Global (VCIG) will supply an AI computing system featuring 640 units of NVIDIA H200 Tensor Core GPUs as part of the contract.

What is the total value of data center investments approved in Malaysia from 2021 to June 2024?

According to MIDA, Malaysia approved 12 data center investment projects with a total value of approximately US$21 billion from 2021 to June 30, 2024.