SOS Limited's Singapore Unit Eyes 500MW Indonesian Data Center Campus Through Non-Binding Memorandum

Future Digital Trading Pte. Ltd., the Singapore subsidiary wholly owned by NYSE-listed SOS Limited, has signed a non-binding Framework Cooperation Memorandum with an Indonesian company that could lead to a 500-megawatt AI and cloud data center campus on Bintan Island.

The agreement, executed on September 15, 2026, and disclosed publicly three days later, lays out preliminary principles rather than firm commitments, with a six-month due diligence period now underway before either party is expected to make further binding decisions.

A Campus Built in Stages, Starting at 50 Megawatts

The contemplated development would be located within the Galang Batang Special Economic Zone in Indonesia's Riau Islands Province. Should the project advance beyond the diligence phase, SOS expects Phase One construction to deliver roughly 50 megawatts of capacity, serving as the foundation for a platform that would ultimately scale to the full 500-megawatt target.

Details including the final investment structure, equity percentages, board arrangements, and exit mechanisms are all deferred to subsequent definitive documentation. SOS Chairman and Chief Executive Officer Yandai Wang framed the memorandum within a broader strategic push into digital infrastructure.

"Southeast Asia is experiencing significant growth in AI data center demand, and Bintan offers proximity to Singapore with potentially lower power and land costs and special-economic-zone advantages," he said. Wang added that the company intends to move deliberately through diligence and documentation and would update shareholders as milestones are achieved.

Location Chosen for Connectivity and Cost Advantages

KEK Galang Batang sits within the Singapore-Johor-Riau growth corridor. SOS described the site as offering sub-2-millisecond connectivity to Singapore, a market where constraints on available land and power have increasingly pushed demand across the border into Malaysia and Indonesia.

The company cited these dynamics as central to the site's strategic rationale. On the power side, the memorandum requires the local Indonesian partner to use commercially reasonable efforts to secure no less than 60 megawatts of effective power capacity before the first phase is commissioned.

A ten-year coal-index-linked pricing formula is contemplated to provide what SOS described as competitive, market-responsive electricity costs. The company acknowledged that final power pricing remains subject to negotiation of definitive documentation and that actual delivered prices will depend on coal market conditions and other variables.

Wholesale Model Targets Hyperscale and AI Customers

The campus is intended to operate on a wholesale colocation basis, providing large, dedicated, high-density data halls to hyperscale and AI tenants under long-term arrangements. SOS disclosed that it has already received indicative, non-binding expressions of interest totaling approximately 180 megawatts from prospective tenants, which the company described as including certain global cloud, internet, and AI platforms.

The company was explicit about the limitations of those indications, noting that they remain subject to negotiation, execution of definitive customer contracts, and the provision of credit support. No assurance was offered that agreements would ultimately be reached on expected terms or at all.

Financing Planned Around Project Debt and Equity

If the project moves forward, SOS currently expects to fund development through a combination of equity and project finance, with senior debt to be arranged through institutional lenders. The company has not finalized any financing arrangements, and it stated that the ultimate capital structure, terms, partners, and amounts all remain contingent on the outcome of due diligence and the negotiation of definitive agreements.

SOS also noted it may consider various exit or monetization strategies in the future but has not adopted any specific plans at this stage. Wang described the company's intended methodology as disciplined: secure power arrangements, build customer relationships, construct in modular phases, and pursue financing backed by contracted revenue.

SOS Financial Profile Underpins Lender and Tenant Case

As of December 31, 2025, SOS reported total assets of approximately 465 million US dollars and shareholders' equity of approximately 423 million US dollars. The company characterized its leverage profile as low and argued that its NYSE listing, US GAAP financial reporting, and cross-border compliance framework, combined with its partners' local resources, provide a foundation for satisfying the requirements of international lenders and prospective tenants.

SOS Limited's current business operations span blockchain-based service solutions, cryptocurrency mining, and commodity trading conducted through its subsidiary SOS International Trading Co. Ltd. The company's major traded commodities include mineral resin, soybean, wheat, sesame, liquid sulfur, petroleum coke, and latex.

Binding Provisions Are Limited, Risks Numerous

SOS was consistent throughout its announcement in emphasizing the preliminary and conditional nature of the memorandum. While certain provisions are binding, including those relating to representations and warranties, a framework agreement deposit, confidentiality, binding effect, and governing law, the memorandum as a whole does not constitute a legally binding obligation to complete the transaction.

The company stated directly that there can be no assurance the transaction will be completed, that any phase will be built at the scale or timing described, or that expected financial results will be realized. Completion of due diligence, negotiation and execution of definitive agreements, financing, and applicable regulatory approvals are all outstanding conditions before the project can progress.