Formosa Smart Energy Expands into AI Data Center CSP Operations Partners with CXIT to Launch First Joint Development Project in Mailiao

Formosa Smart Energy Tech Corporation (FSET) has taken another step forward in its AI industry expansion. The company announced that it has signed a letter of intent (LOI) with CHUANG-XI Information and Technology Co., Ltd. (CXIT) to jointly develop an AI data center (AIDC), with Formosa Plastics Group’s Mailiao Industrial Park serving as the site for their initial joint project. The two companies also plan to establish a cloud service provider (CSP) joint venture to undertake AIDC operations and deliver compute services, further strengthening FSET’s strategic positioning in the AIDC market.

FSET Chairperson Sandy Wang pointed out that this milestone goes beyond simply adding an AIDC construction project; more importantly, it transforms existing industrial resources into new growth drivers in the AI era. Over the years, Formosa Plastics Group has developed large-scale industrial sites, power infrastructure, and utility systems, supporting the operation and upgrading of Taiwan’s manufacturing sector. As demand for AIDC deployment rises, these established advantages can generate new industrial value. FSET will integrate its resources to invest in the AI digital infrastructure sector and expand the application scope of its new energy business across the AI industry.

Wang stated that the planned establishment of the CSP joint venture is specifically intended to integrate AIDC construction, operations, and compute services, extending FSET’s role from initial engineering and construction all the way to subsequent service delivery. Through this demonstration site, the company aims to refine its operating model and gain market experience, laying the foundation for future expansion into additional sites and applications, while gradually establishing a comprehensive AIDC business.

FSET President Stephen Liu explained that the initial AIDC joint development project is planned at a megawatt (MW) scale and will proceed at Formosa Plastics Group’s Mailiao Industrial Park. Drawing on their respective expertise, the two companies will integrate site conditions, power supply, utility systems, and data center equipment to complete site construction, testing, and commissioning. The project will also adopt a modular design approach to help shorten the upfront setup timeline, while enabling phased deployment and flexible expansion tailored to customer needs. Once the AIDC becomes operational, the CSP joint venture will take over operations and service delivery.

CXIT Chairman Cheng-Lun Chen emphasized that competition in AI infrastructure goes beyond the number of GPUs and increasingly tests capabilities in power supply, compute, cooling, networking, information security, and overall operational execution. This collaboration combines the resources and expertise of both companies, with CXIT deploying its advanced capabilities in smart operations, information security, and global networking. The two companies will subsequently develop services such as colocation and compute rental, transforming Mailiao’s existing industrial and energy resources into AI compute service capabilities.

Looking ahead, FSET and CXIT will use the Mailiao AIDC collaboration as a springboard to build a comprehensive AI compute service ecosystem encompassing “energy, compute, smart operations, information security, and global networking,” opening up diverse applications and service models for the new energy business in the AI era.(Text and photos courtesy of CXIT)