Realord Tec-New (01196) has announced that on October 8, 2026, its indirectly wholly-owned subsidiary Realord Smart Computing Technology Group Limited (Realord Smart Computing) entered into a memorandum of understanding (MOU) with Longma Smart Computing Investment Limited (the project promoter) regarding a potential project in Johor, Malaysia, involving the design, construction, ownership, and operation of an artificial intelligence data center for the group.

Under the MOU, both parties intend to explore cooperation on the project, which is expected to involve the acquisition of land in Johor, Malaysia, and the construction of facilities and related infrastructure specifically for AI data center development to support artificial intelligence, cloud computing, and other high-performance computing applications.

The proposed AI data center facility is expected to include data center buildings equipped with infrastructure including power supply and distribution systems, cooling systems, and other necessary facilities to house high-performance computing equipment.

The project's planned total capacity is up to approximately 300 megawatts, to be developed in phases, with the first phase comprising approximately 100 megawatts.

The group is expected to leverage its property development and project management capabilities in developing the AI data center facilities and related infrastructure.

The project promoter possesses relevant experience and industry resources in AI data center project development, including project planning, construction, operation and management, financing, and computing services, and will provide the group with all necessary skills and professional expertise to assist in establishing the AI data center.

Under the MOU, the project promoter is expected to assist Realord Smart Computing in discussions with landowners regarding the potential land acquisition for the project, and to coordinate technical, commercial, and other resources for the project's development.

The group will evaluate the project's feasibility and conduct due diligence, including whether the proposed land is suitable for AI data center development and relevant regulatory requirements, including but not limited to land use and the rules and regulations of the regulatory data center task force, which is a cross-departmental body of the Malaysian government responsible for coordinating the assessment and approval process for data center development projects.

Property development constitutes one of the group's principal businesses. The board believes that the project will enable the group to leverage its existing property development and project management capabilities to develop facilities and related infrastructure specifically for AI data centers, thereby expanding its business into the digital infrastructure sector.

Nevertheless, the group will continue to evaluate the project's commercial viability, investment requirements, and potential risks before deciding whether to proceed with the project.