VCI Global stock gains on major utility-scale solar expansion
Investing.com -- VCI Global Limited (NASDAQ:VCIG) stock jumped 7.1% in premarket trading Friday after announcing a strategic expansion into utility-scale solar energy development through a memorandum of understanding with DPS Energy.
The agreement outlines plans to develop a 250-megawatt solar photovoltaic platform on approximately 600 acres in Malacca, Malaysia. The project represents a significant milestone for VCI Global as it positions itself deeper within the energy infrastructure supporting data centers and AI-driven digital infrastructure across Malaysia.
According to the company, the utility-scale platform has an indicative project value of US$200-300 million and potential long-term contracted revenue of US$360-480 million over a 20-year operating life. The solar facility is expected to generate approximately 350 to 450 gigawatt-hours annually, translating to an estimated US$18-24 million in annual gross revenue.
The project aims to support long-term power purchase agreements with utilities, industrial users, and data center operators, with potential for future battery energy storage integration. VCI Global indicated that data center offtake arrangements and adjacent AI infrastructure development are under active evaluation.
The initiative aligns with Malaysia’s national renewable energy targets of 31% capacity by 2025 and 40% by 2035, as the country emerges as a regional hub for hyperscale data centers and AI infrastructure.
"This is not just a solar project; it is an infrastructure platform. As AI, cloud computing, and hyperscale data centres expand across Malaysia, access to large, reliable, and renewable power is becoming mission critical," said Dato’ Victor Hoo, Group Executive Chairman and CEO of VCI Global.
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